Why is Simplified Method Worksheet required when 1099-R plainly shows taxable amount which is less than gross amount. Is this a bug?

[SteamTrain · Accepted solution]

@Blizzard1 

Unfortunately, the question in the interview is misleading for your situation...

If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present  (i.e. you needed to answer YES).  

Answering YES will use the box 2a $$ amount on your for 1040.  Check lines 5a and 5b before and after entering that 1099-R. 

 (But if you answered No, and already entered some $$ in the "General" or "Simplified" calculation area ,you might need to delete your 1099-R first and re-enter it from scratch...not sure of that though)

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[Blizzard1]

Thank you, Steam Train.  That helped me!  By changing it to Yes it did use the 2a amount and skipped the Calculations of taxable amount.  I appreciate people like you taking the time to help others.