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Form 8615 Line 7 showing $0, but worksheet shows another value - 2 L7 worksheets

Filing Taxes for my children, when I say "No" to Pre-TCJA TurboTax premier generates 2 Line 7 forms.  One form is called "8615 L7 Qual Dv" which calculates the tax to be $0. And another form is called "8615 L7" which calculates the tax to be $XXX (a number in the hundreds). When I look at "8615 L7 Qual Dv" it is actually totally incorrect, while form "8615 L7" is correct. However, my "Form8615" is pulling $0 instead of $XXX onto Line 7. How do I get it to pull the $XXX from the correct form. It seems like this is a software bug or am I doing something wrong?

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2 Replies
Anonymous
Not applicable

Form 8615 Line 7 showing $0, but worksheet shows another value - 2 L7 worksheets

I am seeing this exact same issue, hence why I started looking to see if there is some bug in the software. 

 

Form "8615 L7 Qual Div" Line 2 calculation is wrong -- it says: "Enter the smaller of Form 8615, line 4, or line 1". The "calculated result" is $0, which is not correct. That $0 result then causes the remainder of the calculation to result in 0 and places that value in the 8615 Line 7, disregarding the amount that has an actual dollar amount in the form "8615 L7".

 

The only thing that I'm trying to figure out is why there is an asterisk next to Form "8615 L7 Qual Div" Line 2 saying: "If this worksheet is for the Schedule D or Qualified Dividends and Capital Gains Worksheet tax calculation, see cross-reference for calculation changes." - does this mystery cross-reference make it 0 somehow??

Form 8615 Line 7 showing $0, but worksheet shows another value - 2 L7 worksheets

There is no bug, I figured it out by directly reading the Form 8615 instructions on the IRS website:

 

IF: Using the Qualified Dividends and Capital Gain Tax Worksheet for line 7 tax.

If you use the Qualified Dividends and Capital Gain Tax Worksheet to figure the line 7 tax, complete that worksheet in its entirety but with the following modifications.

 

1. Line 8. Add Form 8615, line 6, and $2,650. Enter the smaller of the result and the amount listed below for your filing status. • Single or married filing separately—$39,375. • Head of household—$52,750.

 

2. Line 15. Add Form 8615, line 6, and $12,950. Enter the smaller of the result and the amount listed below for your filing status. • Single—$434,550. • Married filing separately—$244,425. • Head of household—$461,700.

 

3. Line 24. Complete the 2019 Line 7 Tax Computation Worksheet again, using the amount from line 7 of the Qualified Dividends and Capital Gain Tax Worksheet instead of the amount from line 4 of Form 8615.

THIS STEP IS the CALCULATION OF: "8615 L7 Qual Div" - for me this is the $0 number

 

4. Line 26. Figure the tax on the amount on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet using the 2019 Line 7 Tax Computation Worksheet.

THIS STEP IS the CALCULATION OF: "8615 L7" - for me this is the $XXX number

 

Because the tax is based on the Qualified Dividends and Capital Gains Worksheet (8615 QDCG Wks), where my line 27 says $0, seems that my tax is actually $0.

 

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