1099R Box 7 code T Please Help!

[sandigi]

thank you again

I posted a partial answer on the other thread, then took another look at how Drake handles this and also read this thread.

You are probably trying to enter the info on the 1099 screen which appears under the "General" tab (the screen which more or less mimics the layout of the 1099R). However, there is a more detailed input screen you can use. Look under the "Adjustments" tab on the main screen. Listed under the "Adjustments" tab is a special input screen for Roth IRA's. It offers you more places to input data specific to your client's situation - these are not found on the shortcut screen.

There is also a nice short video you can link to. The link appears in blue near the top of the input screen.

Yes I am entering just as you said. I also entered on the Adjustments tab for the Roth. Thanks again, John!

[FEDUKE404]

Dealing with unusual tax situations using Drake software

I posted a partial answer on the other thread, then took another look at how Drake handles this and also read this thread.

You are probably trying to enter the info on the 1099 screen which appears under the "General" tab (the screen which more or less mimics the layout of the 1099R). However, there is a more detailed input screen you can use. Look under the "Adjustments" tab on the main screen. Listed under the "Adjustments" tab is a special input screen for Roth IRA's. It offers you more places to input data specific to your client's situation - these are not found on the shortcut screen.

There is also a nice short video you can link to. The link appears in blue near the top of the input screen.

Does Drake not have a Q&A option at least to be available when you hit some bumps in the road? Sometimes merely trying to "fill in" forms can quickly lead you down an incorrect path. . .

Second Drake question: Does the software not have an alerts and/or error check that should have caught (apparently) the original incorrect/incomplete data entries of the Form 1099-R data?

(I thought Drake software was at the top of the tax software heap. . .but maybe they are relying too much on filling in a form versus getting ALL of the information needed to fully complete the form.)

Helpful note for sandigi: You should be very prudent in your use of overrides. Most tax software in recent years has gotten very "smart" and I generally find it unwise to override anything (especially a calculated entry!) unless there is a darn good reason that I can justify to do so. An example would be something like "I KNOW I entered $x for long-term care premiums, but it keeps showing $y. I'll just override it to the correct $x and move on."

Peace.

FE

[JohnH]

Yes, Drake has help screens for almost every situation.
It also has videos you can click to get a 30-second explanation on many issues.
Both are accessed directly from within the input screen.

Yes, Drake has copious alerts and warnings available when you display the return.

Yes, Drake is a great program and I'm completely committed to it.
Nothing in its price range can touch it, especially when you factor in its speed.
I say that because in this business, speed = profits.

[TAXNJ]

Agree

Does Drake not have a Q&A option at least to be available when you hit some bumps in the road? Sometimes merely trying to "fill in" forms can quickly lead you down an incorrect path. . .

Second Drake question: Does the software not have an alerts and/or error check that should have caught (apparently) the original incorrect/incomplete data entries of the Form 1099-R data?

(I thought Drake software was at the top of the tax software heap. . .but maybe they are relying too much on filling in a form versus getting ALL of the information needed to fully complete the form.)

Helpful note for sandigi: You should be very prudent in your use of overrides. Most tax software in recent years has gotten very "smart" and I generally find it unwise to override anything (especially a calculated entry!) unless there is a darn good reason that I can justify to do so. An example would be something like "I KNOW I entered $x for long-term care premiums, but it keeps showing $y. I'll just override it to the correct $x and move on."

Peace.

FE

We should remember "software" is a tool. There's an expression "garbage in" "garbage out". A preparer must review the output to ensure it follows the code. Sometimes the time spent figuring out the software would have been better spent manually preparing.

[JohnH]

We should remember "software" is a tool. There's an expression "garbage in" "garbage out". A preparer must review the output to ensure it follows the code. Sometimes the time spent figuring out the software would have been better spent manually preparing.

That's sometimes true, but I usually find that time spent figuring out the software leads to greater efficiency in the future (unless it's a one-time issue). This is especially true with Drake because it is lightning fast, so once you get the short path locked in your brain, your speed increases exponentially.

[Lion]

By the way, sometimes entering long term care premiums of $x really does get reported as $y, because depending on the age and amount, the full amount might not be available as a deduction.

[FEDUKE404]

LTC limitations

By the way, sometimes entering long term care premiums of $x really does get reported as $y, because depending on the age and amount, the full amount might not be available as a deduction.

Ah, my point EXACTLY about overrides!

(Problem is if you decide to override $y, changing it to $x, because you're certain $x is the correct amount. . . . . )

And, of course, this is a separate issue from the oft-cited GIGO concerns with software.

FE

[ruthc]

TaxAxt

Thank you for the help, Ruth. I can't find a 5 yr button. What software do you use?

I use TaxAct. Hope it helps.

[sandigi]

Thank you all!

Thanks to everyone who responded. I am overwhelmed by your kindness. I recalled client, redid tax return, and believe it is all correctly reported now based on the information I was given.

I also heeded the advice about overriding the software and studied up some more. This crazy return had 6 1099R's from the Roth for H/W (3 each).
2013 correction of excess contribution which would go on the 2013 tax return.
2014 correction of excess cont for the 2014 return.
And then the whopping total wipeout of Roth account which client "thought he did" this or that.

Whew!