H&R Block 2023 incorrectly reporting taxable IRA distribution

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RangersFan
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H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by RangersFan »

Just a heads up: using the interview process, I entered the 2023 RMD I took from my Inherited IRA, just like I have for the past several years. I entered all the amounts and codes just like in the past. In the end, H&R Block does not include the amount of the distribution on line 4b of Form 1040 (taxable IRA distributions). The 2022 software had no problem reporting this taxable distribution correctly.

H&R Block support says that they won't be releasing any software updates until early January 2024. That doesn't do me any good since I want to get a close estimate of my 2023 tax picture so I can take any possible steps before 12/31 to minimize my tax liability. I ended up manually overriding the amount on line 4b of Form 1040.

I'm using the Windows download of the Deluxe version.

Anyone else seeing bugs in the code yet?
nalor511
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by nalor511 »

I always have to use 2022 software for my December estimates. Forms are never good enough in Dec, IME
EagertoLearnMore
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by EagertoLearnMore »

Yes, I have found an error with Residential Energy Efficiency Credit. The interview goes smoothly, but the credit does not appear in the summary of credits, totally missing. BUT, when I look at forms 5695 and 1040 the correct amounts are present. Maybe will be corrected with Jan. 5 update.
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FiveK
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by FiveK »

RangersFan wrote: Tue Dec 05, 2023 1:44 pm That doesn't do me any good since I want to get a close estimate of my 2023 tax picture so I can take any possible steps before 12/31 to minimize my tax liability.
To the extent your situation is covered, one or more of the Tax estimation tools discussed there could work. If your situation is wildly complicated, then maybe not....
prd1982
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by prd1982 »

It worked for me. When going thru the interview, you should be asked if some or all of the distribution was taken as a QCD. Then you say some, they ask how much. The 4b value is reduced by the QCD, and the word QCD is added to the text of the line.
Topic Author
RangersFan
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by RangersFan »

prd1982 wrote: Tue Dec 05, 2023 2:57 pm It worked for me. When going thru the interview, you should be asked if some or all of the distribution was taken as a QCD. Then you say some, they ask how much. The 4b value is reduced by the QCD, and the word QCD is added to the text of the line.
I don't understand. Why would I say some of the distribution was a QCD when none was?
livesoft
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by livesoft »

Can't make QCD from an inherited IRA anyways.
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prd1982
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by prd1982 »

livesoft wrote: Tue Dec 05, 2023 3:16 pm Can't make QCD from an inherited IRA anyways.
Sorry I just saw the issue was distribution wrong with IRA, and thought the issue was QCD. I’ve been distracted today
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by livesoft »

RangersFan wrote: Tue Dec 05, 2023 1:44 pmAnyone else seeing bugs in the code yet?
I'm seeing same bug in inherited IRA withdrawal. A workaround for now is to not label it as inherited and give it code 7 (normal distribution) instead of 4 (death).
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RangersFan
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by RangersFan »

prd1982 wrote: Tue Dec 05, 2023 3:21 pm
livesoft wrote: Tue Dec 05, 2023 3:16 pm Can't make QCD from an inherited IRA anyways.
Sorry I just saw the issue was distribution wrong with IRA, and thought the issue was QCD. I’ve been distracted today
No problem. I've had plenty of those kinds of days myself. May tomorrow be better.
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RangersFan
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by RangersFan »

livesoft wrote: Tue Dec 05, 2023 3:28 pm
RangersFan wrote: Tue Dec 05, 2023 1:44 pmAnyone else seeing bugs in the code yet?
I'm seeing same bug in inherited IRA withdrawal. A workaround for now is to not label it as inherited and give it code 7 (normal distribution) instead of 4 (death).
So this is a pretty substantial bug. I gotta wonder how, since the same type of transaction was properly recorded last year.

I also noticed another bug. After I imported last year's return, the 2023 Form 1040 was showing a $2 earned income credit. As far as I remember, I have never claimed the EIC. I had to manually override that line too.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

nalor511 wrote: Tue Dec 05, 2023 1:58 pm I always have to use 2022 software for my December estimates. Forms are never good enough in Dec, IME
yeah; tax software will get a flurry of updates in early January and still may be wrong. By March most packages are pretty stable although we use TaxSlayer starting in February for TaxAide.
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MadDwag
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by MadDwag »

RangersFan wrote: Tue Dec 05, 2023 1:44 pm Anyone else seeing bugs in the code yet?
The premium tax credit/QBI/self employed health insurance isn’t working properly yet. I was trying to decide if I wanted to go Roth in my solo 401k or not but the numbers didn’t seem right when I was changing things. Dug in a bit and found that regardless of what I changed the software was still deducting all of my health insurance premiums even though the PTC credit was going up. Too bad the double dipping isn’t real!
Geologist
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by Geologist »

livesoft wrote: Tue Dec 05, 2023 3:16 pm Can't make QCD from an inherited IRA anyways.
If you are at least 70.5 years old, you certainly can make a QCD from an inherited IRA.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by livesoft »

Geologist wrote: Wed Dec 06, 2023 9:27 am
livesoft wrote: Tue Dec 05, 2023 3:16 pm Can't make QCD from an inherited IRA anyways.
If you are at least 70.5 years old, you certainly can make a QCD from an inherited IRA.
I stnad corrected, thanks!
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PMQ Magoo
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H & R Block Software Bug (?)

Post by PMQ Magoo »

[Thread merged into here --admin LadyGeek]

Is anyone else seeing an issue with 2023 H&R Block Deluxe tax software in regard to inherited IRA distributions? For some reason the software is not taxing the distribution on a non spouse inherited IRA distribution. I updated the software to the latest available load today. All the values, including taxable amount, was input correctly on the interview section of the software. I compared the interview with my 2022 H&R Block software and the inputs are the same. (2022 software taxed the distribution correctly). The only way I can get the 2023 software to tax the distribution is if I change the IRA from an inherited IRA to my own traditional IRA. I phoned H&R Block, but wasn't able to get through to a human. Just curious if anyone else has run across this same problem.
Silk McCue
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Re: H & R Block Software Bug (?)

Post by Silk McCue »

Welcome to the forum!

For this type of question you would definitely be better served on a forum focused on H&R Block software.

You might want to contact them directly as well.

https://www.hrblock.com/support/

Cheers
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lthenderson
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Re: H & R Block Software Bug (?)

Post by lthenderson »

I personally wouldn't worry until the first of February. There are always tons of updates and bug fixes during January.
PMQ Magoo
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Re: H & R Block Software Bug (?)

Post by PMQ Magoo »

Silk McCue wrote: Thu Jan 04, 2024 3:40 pm Welcome to the forum!

For this type of question you would definitely be better served on a forum focused on H&R Block software.

You might want to contact them directly as well.

https://www.hrblock.com/support/

Cheers
Thank You for the Welcome! I have spent a lot of time reading posts on this forum, first time posting though!
I did call H&R block support. Wasn't able to reach a human or leave a message. (Their support phone and online chat is all automated.)
PMQ Magoo
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Re: H & R Block Software Bug (?)

Post by PMQ Magoo »

lthenderson wrote: Thu Jan 04, 2024 3:42 pm I personally wouldn't worry until the first of February. There are always tons of updates and bug fixes during January.
Yup. I'm not worried. Just curious if anyone else has run across this.
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Re: H & R Block Software Bug (?)

Post by jebmke »

This was a problem last year too I think. I believe the “fix” was simply to not call it an inherited IRA in the interview. The Box 7 code should match the paper 1099-R though.
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Re: H & R Block Software Bug (?)

Post by livesoft »

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Re: H & R Block Software Bug (?)

Post by PMQ Magoo »

livesoft wrote: Thu Jan 04, 2024 4:27 pm See
viewtopic.php?p=7580978#p7580978
Thank You!! I feel better that I am not alone on this problem!!
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by LadyGeek »

I merged PMQ Magoo's thread into the ongoing discussion. The combined thread is in the Personal Finance (Not Investing) forum (taxes).

(Thanks to the member who reported the post and provided a link to this thread.)
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maddogmiller
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by maddogmiller »

Thanks for the information. I noticed the same problem last month and was waiting for the Jan 5 update. Unfortunately, while the Jan 5 update to the H&R Block program removed a lot of the "This is not final" warnings, the problem with the Inherited IRA distribution not being taxable remains. Will wait for the next update, I suppose.

1/19/24 - Downloaded latest H&R Block update. The problem with the Inherited IRA distribution not being taxable remains. :(

1/20/24 - I talked with my brother last night who was seeing the same problem regarding inherited IRA's. He decided to pursue it with H&R Block, He started with the chat bot. As expected, no help. He proceeded to the live chat, which was equally useless. He finally tried calling H&R Block and actually talked to a real human. After several minutes of explaining the problem, and waiting on hold multiple times as the H&R rep talked with others, they apparently acknowledged there was something that needed to be addressed. He was given a case number and advised someone would contact him. Who knows ...?

1/23/24 - UPDATE - My brother called me after talking with H&R Block again this morning. After explaining that the Inherited IRA distribution was not being taxed, the H&R Block rep stated this is a known problem and is (hopefully) being addressed. The rep stated that it might be addressed in the next update (this week) or the update after that (next week.) Additionally, the rep provided a "workaround" where it is still being reported as "inherited," but it IS taxed. This workaround involves editing the 1099-R Worksheet for the Inherited IRA. I can provide details on how to implement the workaround if anyone is interested.
Last edited by maddogmiller on Tue Jan 23, 2024 1:51 pm, edited 1 time in total.
shapirogene
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by shapirogene »

Having the same issue and went through the same hoops and was on phone with 2 different hrblock call center folks………..waiting on call back from support since they said they were escalating this case and would call me back in 2 hours…..we are 3 hours now since the call ended……thinking they aren’t going to call back….what a surprise :oops: :oops:

I did change the type to a normal distribution to simulate the proper handling of the inherited Ira and see the results. I guess I will keep doing updates and will apply when they are ready. Hoping this gets fixed. I wonder how many block tax users and professionals did their taxes and sent them in with the wrong amount of taxable income. Oh well.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

shapirogene wrote: Sat Jan 20, 2024 1:18 pm Having the same issue and went through the same hoops and was on phone with 2 different hrblock call center folks………..waiting on call back from support since they said they were escalating this case and would call me back in 2 hours…..we are 3 hours now since the call ended……thinking they aren’t going to call back….what a surprise :oops: :oops:

I did change the type to a normal distribution to simulate the proper handling of the inherited Ira and see the results. I guess I will keep doing updates and will apply when they are ready. Hoping this gets fixed. I wonder how many block tax users and professionals did their taxes and sent them in with the wrong amount of taxable income. Oh well.
The IRS only cares if the codes on the 1099-R and the amounts match (and, of course the amounts are correct on the 1040). They don't care how you get there (e.g., they care not one whit if you lied to the software that this is a normal distribution but put "4" in Box 7).
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wasanengineer
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by wasanengineer »

Yes, I have seen the same problem ( incorrect report of inherited IRA partial-liquidation as taxable Income) , even with the January 19 2024 update of HRBlock Deluxe w State.

So i followed the blogs below, and what corrects the problem , is the suggestion during Interview, to select "No" for IRA as inherited. The Code does not need to change.

Sort of frustrating that these problems show up, even if the prior year Release never had the problem. Most software goes through extensive regression testing after upgrade or update. This is to see what got broken in the Update.

Both HRB and Intuit TT both must ignore regression testing on their releases. They figure the customer will discover the problems for them. I have similar problems with Software that controls my 2021 Toyota.

These tax software companies (HRB, TT, TS) are going to run out sometime with A.I. nearby.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

wasanengineer wrote: Sat Jan 20, 2024 5:09 pm Yes, I have seen the same problem ( incorrect report of inherited IRA partial-liquidation as taxable Income) , even with the January 19 2024 update of HRBlock Deluxe w State.

So i followed the blogs below, and what corrects the problem , is the suggestion during Interview, to select "No" for IRA as inherited. The Code does not need to change.

Sort of frustrating that these problems show up, even if the prior year Release never had the problem. Most software goes through extensive regression testing after upgrade or update. This is to see what got broken in the Update.

Both HRB and Intuit TT both must ignore regression testing on their releases. They figure the customer will discover the problems for them. I have similar problems with Software that controls my 2021 Toyota.

These tax software companies (HRB, TT, TS) are going to run out sometime with A.I. nearby.
I think the only time where the question may be relevant is if the inherited IRA has a basis and an 8606 needs to be generated for that distribution only.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by CAsage »

I'm equally annoyed and peeved. Very strange that things that have been worked out years ago and were correct in the past, have now failed. Must be some weird links in the software that they are patching together. IRA taxable failed (might be ok today), and the kiddie tax stuff doesn't work. Lots of things aren't actually working yet, so ... off to find something else to do until February. Just as well, don't have all my numbers anyway. Poor OCD me.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by asset_chaos »

I also see the inherited IRA distribution not being recognized and the $2 of earned income credit showing up on my kids' returns (ironically just after a page that says you are not eligible for the EIC). The update today did not fix, but Block now says another update is due in 5 days. Happily I have plenty of things to keep me busy while waiting for tax software to get right.
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suchaguy
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by suchaguy »

I have the same problem with my Inherited IRA distribution not being reported as taxable income. Also chatted with H&R Block people, but no solution was offered.

I did find the same solution of answering the question as being "not inherited".

If updates don't solve it, I will go with the suggestion of not calling it an inherited IRA, but keeping the code as #4.

Thanks to all for the help!
mpcyclone
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by mpcyclone »

I have also been trying to get a resolution to this issue since December. I have called after each update and got the standard answer of "wait for the next update". I finally got someone who seemed to understand and was going to make sure the issue is being escalated to the developers.

However, I have now run into another big software issue and I'm wondering if I need to change to another software company after using H&R Block for years. During my call yesterday the representative told me the Iowa software was ready to download even though I have not received the email to download it. I downloaded it and immediately found a major error. Iowa had major tax law changes go into effect in 2023, including a new IA 1040 form and, importantly to me, NOT taxing any retirement income if you are over 55 (social security, pensions, Ira Distributions, etc.). Well, the software did have the new form but did NOT follow the new retirement income rules. I can understand there were major changes that needed to be made but they should not have made the program available to download until checked and ready. I called back and spoke to t5he same representative and he seemed very interested in getting off the phone to report this issue.

I am losing faith in H&R Block after decades of using their software. Where is the quality control?

Do you still have faith in H&R Block or are you going to change to another software?
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

See above. Lie to the software and you'll be fine. I lie to tax software all the time to get the correct result.

Tax software companies use you enthusiastic early filers as their quality control team. It has been this way for a long time.

My mid March, most of the bugs have been reported and fixed (but not this one apparently as it existed last year).
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munemaker
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Re: H & R Block Software Bug (?)

Post by munemaker »

PMQ Magoo wrote: Thu Jan 04, 2024 4:08 pm
lthenderson wrote: Thu Jan 04, 2024 3:42 pm I personally wouldn't worry until the first of February. There are always tons of updates and bug fixes during January.
Yup. I'm not worried. Just curious if anyone else has run across this.
Yes, I have been experiencing the same problem. RMDs from the two inherited IRAs we own are not coming up as taxable, when we know they are, of course. And yes, this worked properly in previous years. I did report the problem on their help chat. The person asked me all kinds of questions that had absolutely nothing to do with the problem, saying she had to complete a form in order to escalate it. There is an update coming out tomorrow (01/26/2023) that will hopefully fix this problem.

And no, I am not worried about it either. Just curious.

Mun
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munemaker
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by munemaker »

wasanengineer wrote: Sat Jan 20, 2024 5:09 pm
These tax software companies (HRB, TT, TS) are going to run out sometime with A.I. nearby.
Could you explain this statement further? I don't understand. Run out? Run out of what? AI nearby?

Thanks
Mun
Tom_T
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Re: H & R Block Software Bug (?)

Post by Tom_T »

munemaker wrote: Thu Jan 25, 2024 10:14 am
PMQ Magoo wrote: Thu Jan 04, 2024 4:08 pm
lthenderson wrote: Thu Jan 04, 2024 3:42 pm I personally wouldn't worry until the first of February. There are always tons of updates and bug fixes during January.
Yup. I'm not worried. Just curious if anyone else has run across this.
Yes, I have been experiencing the same problem. RMDs from the two inherited IRAs we own are not coming up as taxable, when we know they are, of course. And yes, this worked properly in previous years. I did report the problem on their help chat. The person asked me all kinds of questions that had absolutely nothing to do with the problem, saying she had to complete a form in order to escalate it. There is an update coming out tomorrow (01/26/2023) that will hopefully fix this problem.

And no, I am not worried about it either. Just curious.

Mun
I just installed an update, and the problem is not fixed. I can select "Death" as the reason, but if I say the IRA was inherited, the software still does not treat it as taxable. I've had this problem in the past, and I just assume that H&R Block has no interest in fixing it for whatever reason.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by EagertoLearnMore »

Yes, I concur that today's update has NOT fixed the IRA distribution problem. Filing early or even when the IRS begins to accept returns is no longer an option when the software still has so many bugs. At least they did fix the Energy credit bug from this year.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

EagertoLearnMore wrote: Thu Jan 25, 2024 10:54 am Yes, I concur that today's update has NOT fixed the IRA distribution problem. Filing early or even when the IRS begins to accept returns is no longer an option when the software still has so many bugs. At least they did fix the Energy credit bug from this year.
Tax software has been buggy in the early weeks for years. I believe this "bug" was in last year's SW so I doubt this will get fixed in this year's SW.
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Joybeejoy
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by Joybeejoy »

I tweeted HR Block about this. That makes it public to everyone. My experience in the past, more likely to get a resolution.
Used HR Block last year and this was not a problem.
They requested my info and I DM'd them.
Asked for fix or refund.
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by asset_chaos »

While the inherited IRA bug hasn't been fixed, the spurious $2 earned income credit bug has been fixed.
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rullshan
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by rullshan »

I'm having the problem of being unable to set a date of the IRA as override for a code 'T'. I am confident the inherited IRA has a history of being in retirement Roth IRAs, and pretty sure most of it is not earnings, but instead contributions.

Seriously, couldn't this have been made simpler for people grieving their loved ones. This legal code is demanding you prepare for everyone you love dying, like a psychopath. Unless it's just H&R block being insufficient for these 'complicated' situations. I had such a good experience filing when employed full time.
pd75
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by pd75 »

I compared my 2022 and 2023 H&R Block taxes to see if there were any differences in the reporting of the Inherited IRA distribution from a non-spouse with no basis. The interview form answers were the same. I then looked at the 1099R worksheets and noticed under IRA Distributions, B. Inherited IRA's, 3.b Enter the taxable amount of the distribution, for 2022, the taxable amount was filled in on the worksheet but it was blank on the 2023 worksheet. I entered the taxable amount of the distribution on the 3b line of the 2023 worksheet and then the amount was correctly reported as income and taxed.

H&R Block needs to notify users of this existing problem and correct it.
whole.enchilada
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by whole.enchilada »

Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
BespokeBiker
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by BespokeBiker »

Thanks to all for the heads up on the glitch in entering Inherited IRA RMD info.

My 1st time using H&R Block software and I'd expected "quick & intuitive". But so far there have been several "say what??" moments, with confusion around Inherited IRA RMD entry being one of 'em. So anyway, like all-y'all, I'll be watching to see if this gets cleared up with the next update(s).
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

whole.enchilada wrote: Tue Jan 30, 2024 9:42 pm Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
Lie to the software. When tripe interview asks if it is inherited, say “no”
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by rkhusky »

jebmke wrote: Wed Jan 31, 2024 6:13 am
whole.enchilada wrote: Tue Jan 30, 2024 9:42 pm Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
Lie to the software. When tripe interview asks if it is inherited, say “no”
+1
What’s the point of knowing if it’s an inherited IRA? Are they trying to determine if you need to take an RMD or whether you’ve emptied it in 10 years or if you’ve withdrawn the correct amount?
Seems like all the software should need to know is the amount of withdrawal from a tIRA (and whether there are/were any nondeducted contributions).
jebmke
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Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

rkhusky wrote: Wed Jan 31, 2024 8:32 am
jebmke wrote: Wed Jan 31, 2024 6:13 am
whole.enchilada wrote: Tue Jan 30, 2024 9:42 pm Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
Lie to the software. When tripe interview asks if it is inherited, say “no”
+1
What’s the point of knowing if it’s an inherited IRA? Are they trying to determine if you need to take an RMD or whether you’ve emptied it in 10 years or if you’ve withdrawn the correct amount?
Seems like all the software should need to know is the amount of withdrawal from a tIRA (and whether there are any nondeducted contributions).
It might trigger a separate 8606 if there is a basis but beyond that, I have no idea. When a spouse inherits an IRA with a basis and combines it with their own, there is a bit of a calculation that has to occur and it requires the value of the IRA at time of death and 8606 info from the deceased spouse (I''m working with old memory cells here on a case I had in 2019).
Stay hydrated; don't sweat the small stuff
miscue
Posts: 8
Joined: Thu Mar 11, 2021 4:03 pm

Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by miscue »

rkhusky wrote: Wed Jan 31, 2024 8:32 am
jebmke wrote: Wed Jan 31, 2024 6:13 am
whole.enchilada wrote: Tue Jan 30, 2024 9:42 pm Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
Lie to the software. When tripe interview asks if it is inherited, say “no”
+1
What’s the point of knowing if it’s an inherited IRA? Are they trying to determine if you need to take an RMD or whether you’ve emptied it in 10 years or if you’ve withdrawn the correct amount?
Seems like all the software should need to know is the amount of withdrawal from a tIRA (and whether there are/were any nondeducted contributions).
I am no tax expert but... If you were under 59 1/2 and were taking a distribution from a non-inherited IRA, wouldn't that imply the additoinal 10% penalty? Or is that figured out by the distribution code?
jebmke
Posts: 24927
Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

Post by jebmke »

miscue wrote: Wed Jan 31, 2024 3:42 pm
rkhusky wrote: Wed Jan 31, 2024 8:32 am
jebmke wrote: Wed Jan 31, 2024 6:13 am
whole.enchilada wrote: Tue Jan 30, 2024 9:42 pm Same exact issue here. Called HRB software support and they were clueless. Tried forcing the correct distribution total via the in-app 1040 but it blocked me from changing the total in box 4b. Hoping this gets fixed in an update. Feb. 2 is the next one, I believe. If not, I'm switching over to Turbotax as the problem does not exist in their online version.

Please do post if you find a solution! Thanks!
Lie to the software. When tripe interview asks if it is inherited, say “no”
+1
What’s the point of knowing if it’s an inherited IRA? Are they trying to determine if you need to take an RMD or whether you’ve emptied it in 10 years or if you’ve withdrawn the correct amount?
Seems like all the software should need to know is the amount of withdrawal from a tIRA (and whether there are/were any nondeducted contributions).
I am no tax expert but... If you were under 59 1/2 and were taking a distribution from a non-inherited IRA, wouldn't that imply the additoinal 10% penalty? Or is that figured out by the distribution code?
Distribution code. Inherited IRA normally doesn’t trigger a penalty. Code 4.
Stay hydrated; don't sweat the small stuff
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