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H&R Block Taxcut Bug
Old 02-24-2018, 04:09 PM   #1
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H&R Block Taxcut Bug

Just thought I'd share an issue with the 2017 TaxCut software. Within the software it incorrectly calculates an "excess contribution" for folks who contribute to both a 457 (b) and a 403 (b) plan. By tax law you can maximize $18K in contributions, to both plans, versus a total limit of $18k for both.

If we had blindly followed the software it would have been an extra $4k in total taxes. The sad thing is that this bug also existed in the 2016 version but has not been fixed. When researching the problem there were folks that filed last year and received incorrect results who had to re-file. H&R has some work to do to re-gain my trust.
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Old 02-24-2018, 06:52 PM   #2
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Did you report the error to them?
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Old 02-24-2018, 09:00 PM   #3
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Not yet, but based on all the chatter on H&R Block Community forums it sounds like they have received beaucoup input about the issue. Started with 2016 TaxCut software.
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Old 02-25-2018, 12:06 AM   #4
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OP - Thanks for posting this.
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Old 02-25-2018, 12:46 AM   #5
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Quote:
Originally Posted by SpinDr View Post
Just thought I'd share an issue with the 2017 TaxCut software. Within the software it incorrectly calculates an "excess contribution" for folks who contribute to both a 457 (b) and a 403 (b) plan. By tax law you can maximize $18K in contributions, to both plans, versus a total limit of $18k for both.

If we had blindly followed the software it would have been an extra $4k in total taxes. The sad thing is that this bug also existed in the 2016 version but has not been fixed. When researching the problem there were folks that filed last year and received incorrect results who had to re-file. H&R has some work to do to re-gain my trust.
Just tried this in the software with $18k in box 12 code E and another $18k in box 12 code G. The excess deferral is flagged in the final review, which points to a worksheet. The field for additional deferral limit is highlighted. Entering 18000 there makes the excess deferral go away. Not ideal, but workable.
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Old 02-25-2018, 08:15 AM   #6
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Just tried this in the software with $18k in box 12 code E and another $18k in box 12 code G. The excess deferral is flagged in the final review, which points to a worksheet. The field for additional deferral limit is highlighted. Entering 18000 there makes the excess deferral go away. Not ideal, but workable.
I like that option for a fix. It is slightly less work than the one I found on the H&R community forum. In looking for a solution it surprised me as to how long the bug has been known but had not been addressed by H&R. Apparently TurboTax handles this issue without any difficulty.
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