3/22/18 – RESOLVED – We recommend accessing each impacted return to verify the 1099-R and PSO exclusions are correctly reflected prior to filing.
Issue #1703 has been opened to resolve an issue that started on Monday, March 19th, after updates were deployed (after 6:00am ET).
What is the issue?
- Claiming the PSO Exclusion within the 1099-R, shows the exclusion amount being subtracted from the Box 2a (taxable amount) entry. However, what is carrying to the 1040 and included in the calculation of the return is the PSO excluded amount subtracted from the Gross Distribution (Box 1).
What returns may be impacted?
- Returns reporting a 1099-R with a PSO Exclusion where the amount in Box 2a (taxable amount) is different than the amount in Box 1 (Gross Distribution). Do not file impacted returns until this post has been marked as RESOLVED.
What returns are not impacted?
- Returns reporting a 1099-R with a PSO Exclusion where Box 2a (taxable amount) is the same as the amount in Box 1 (Gross Distribution) before the exclusion is applied.
- Returns reporting a 1099-R and the Simplified General Rule Worksheet is used to determine the taxable amount and also taking the PSO Exclusion from the SGRW calculated taxable figure.