Form 8915 error

[rebecca7600]

I am telling TurboTax I want to pay all the taxes on my early IRA withdrawal (due to COVID) in the 2020 tax year, but when it completes Form 8915-E, it is still dividing my tax liability by 3. Can anyone please help? Thanks.

[rebecca7600]

In addition: I also early withdrew from Roth, also COVID. I entered my basis but Form 8606 seems to not be reflecting accurately that my earnings are indeed taxable. It says all the earnings are due to disaster and thus not taxable, but I think that is wrong. AND lastly, the figures from 8606 don't seem to be flowing up to the 1040 correctly, which has entirely different figures for the taxable amount which I cannot figure out how TurboTax computed. I have a strong feeling that there are glitches in Forms 8606 and 8915-E and their related figures on the 1040. Is anyone else having issues like these? Thanks.

[Wondering6312]

test

[Wondering6312]

I think this is another related problem they need to fix.  The program is applying the rules for distributions of over 100K from REGULAR IRA’S to Roth IRA’s.  Line 15a is in the section for TRADITIONAL IRAS on the 8606.

INSTRUCTIONS FOR FORM 8606, Line 15a

“If all your distributions are qualified disaster distributions, enter the amount from line 15a on line 15b. If you have distributions unrelated to qualified disasters, as well as qualified disaster distributions, you will need to multiply the amount on line 15a by a fraction. The numerator of the fraction is your total qualified disaster distributions and the denominator is the amount from Form 8606, line 7.”

LIne 7 on the 8606 is for distributions from Traditional IRA’s, not Roth’s

For example, you could be withdrawing 120K from your Roth, 20K was a return of original contributions in January and 100K was after COVID hit.  the program is saying only 100/120=83% of the total distribution can qualify as a COVID distribution and the rest is a taxable distribution.  When in actuality, 100K qualifies and the 20K isn’t taxable at all (assuming your Roth has been open for 5 years.)