Form 8880

[Burke]

Is it agreed that if TP's file MFS, then the spouse's IRA withdrawal does not go on the other spouse's return, making that other spouse eligible for the credit?

[ChEAr$]

Is it agreed that if TP's file MFS, then the spouse's IRA withdrawal does not go on the other spouse's return, making that other spouse eligible for the credit?

wouldn't that be just too good to be true? (grin

However.... see page 11-11 of the TAxbook for your answer.

[Burke]

Well, that is exactly where I looked before I posted. It says, "Taxpayers filing jointly reduce contributions by distributions received by both spouses, unless the spouses filed separately in the year distribution was received." Taxpayers wish to file separately for 2010. Distribution was received in 2010. Credit is allowable on MFS returns if AGI permits. Is my brain out of gear?

[ChEAr$]

Well, that is exactly where I looked before I posted. It says, "Taxpayers filing jointly reduce contributions by distributions received by both spouses, unless the spouses filed separately in the year distribution was received." Taxpayers wish to file separately for 2010. Distribution was received in 2010. Credit is allowable on MFS returns if AGI permits. Is my brain out of gear?

Doesn;'t sound like brain is out so far.

For verification , let your software do the checking. You DO use tax software, right? grin

[Burke]

Works just fine. When filing MFS, form does not call for spouse's distributions. But I also note that software (when filing MFJ) does not automatically put retirement distributions for either spouse on Form 8880. It is a manual input either way, so I am making that decision. Does your software auto-transfer current year distributions to 8880? Mine will auto-carry deduction information to Line 1 or 2, but not distributions to Line 3. I am assuming this is because prior year distributions are included as well after 2007.

[ChEAr$]

Works just fine. When filing MFS, form does not call for spouse's distributions. But I also note that software (when filing MFJ) does not automatically put retirement distributions for either spouse on Form 8880. It is a manual input either way, so I am making that decision. Does your software auto-transfer current year distributions to 8880? Mine will auto-carry deduction information to Line 1 or 2, but not distributions to Line 3. I am assuming this is because prior year distributions are included as well after 2007.

Haven't had that case yet, but this is first year with Drake. I do remember Taxwise did the transfer however.