So on question PI 187A it asks for-
“Enter the untaxed portions of IRA distributions, excluding “rollovers,” your parents received in 2015. These are reported on 2015 IRS Form 1040, lines 15a minus 15b”
If you had an amount for line 15b but 0 for 15A, the result would be a negative number but they won’t let you enter anything less than 0. So…do you enter 0? Or the full amount, ignoring the negative? Please help!
example:
Line 15a=10,000
Line 15b=0
What is the entry for the CSS line 187A???
Well, in your example, you have a $10,000 IRA distribution, none of which is taxable. So, the Profile entry for PI 187A would be $10,000 (assuming the $10,000 IRA distribution was not a rollover).
But the other part of your post asks about an amount on line 15b but nothing on line 15a, which does not match your example, so that is confusing. But let’s say that there was no entry on the 1040 line 15a, and $10,000 on line 15b. In that case, the entire IRA distribution is taxable, there is no untaxed portion of an IRA distribution, so the proper entry on Profile PI 187A is 0.
Yes, the fictional amount on line 15a is 0 and line 15b is 10,000. So, is the answer for 187a, “0?”
Does this $10,000 amount then increase your income in their eyes? Or does it take away since it is taxable? Ugh! I hate this form!
Yes. The entire IRA distribution is taxable; that’s why it’s all on line 15b of the 1040. Profile line PI 187A only wants to know about any untaxed portions of IRA distributions. Since line 15a of the 1040 is 0, you apparently have no untaxed portions of IRA distributions; therefore, you report 0 for Profile PI 187A.
Of course it increases your income (your taxable income, to be specific). Look at the 1040 tax form. Line 15b gets included with all the other reported income (if there is any) to come up with “total income” on line 22.
Thanks so much for your help!