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Form 8880, Drake software required entries


bbstacker
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I'm new to Drake software but have run into a situation that doesn't make sense to me.  When the taxpayer contributes to a retirement plan and takes a distribution from a retirement plan, Drake requires entries on F 8880 to report the distribution.  If no entry is recorded on screen 8880 the software calculates the credit when the credit is not applicable.  Am I missing something with the CARES act or other change that would allow the credit?

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If you are SURE that the credit doesn't apply AND the wage deferral into retirement entered from the W-2 isn't needed AT ALL for the state return, you could omit the entry of the retirement plan contribution on screen W-2 and delete the 8880. See if that works to generate a correct return for your client's fact pattern.

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Thank you for your replies.  I did have the opportunity to speak with Tech Support and found out that the program does not automatically make the calculation for the fact pattern I described.  The tech support representative looked into the programming for F8880 and found it requires the entry of the distribution amount on F8880 in order to properly calculate the credit amount, if any.  Seems to me that it should be an automated process for the program to perform and not require the distribution amount to be entered twice.

Putting numbers to the fact pattern:

MFJ return

AGI 40k

Retire plan distribution 11.5k

Retire plan contribution 2.5k

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  • 2 weeks later...

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