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H&R Block Glitches

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  • H&R Block Glitches

    First time using H&R Block (or any software for that matter) to verify my return that I have done by hand (fillable forms) for years, following IRS instructions. H&R block mysteriously added $2 to the taxable amount for our backdoor Roth conversion (total amount converted was $12,010 for $12,000 non-deductible contributions - they made it $12 as taxable). They also said that we qualify for the QBI deduction (REIT income from VTSAX) but the 8995 seems to clearly indicate our AGI is over the phase out threshold described in the form instructions. Rest was accurate but I would have expected hard stops put on the QBI deduction amounts. This should be a carryforward deduction from what I estimate.

    For those wanting to get into the weeds a bit, for the Net Investment Income Tax EXPENSE section it seems when calculating the state/local tax expenses H&R block uses the $10,000 SALT limit x (Gross Investment Income / AGI). I had seen some debate on Bogleheads as to whether or not the $10k cap was applied to this section or not, and what would happen if you simply elected to take the standard deduction. Just FYI.

  • #2
    What do you have line by line on Form 8606?

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    • #3
      Originally posted by CordMcNally View Post
      What do you have line by line on Form 8606?
      It screwed up my wife's return even though I imported both sets of information exactly the same. It took the 0.999 and multiplied it by the conversion amount ($6004) and came to a number BELOW $6k - $5998. This should have been exactly $6,000. This then assessed an additional $2 of tax on the conversion ($6 instead of $4).

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      • #4
        I really wish taxes were less complicated.

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        • #5
          So strange. Did you ever get it figured out?

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          • #6
            Originally posted by CordMcNally View Post
            So strange. Did you ever get it figured out?
            Nope. I filed by paper and was just using the software to double check my work. Their QBI deduction was actually correct. The income limits don’t apply to REIT dividends.

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            • #7
              Originally posted by Tangler View Post
              I really wish taxes were less complicated.
              I don’t 🤣.
              Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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