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Another issue with TaxAct, which seems to have arbitrarily divided our Earned Income amount between us for the purpose of computing the maximum IRA contributions.

My query to Tech Support:

Line 8 of the Roth IRA Contribution Worksheet produces the correct value for our return.

Line 9 divides that number into two unequal parts, placing the larger part in the first column as a calculated (blue) value and the smaller part in the second column as an editable (green) value.

The two parts in Line 9 add up to Line 8, which is correct.

However, we do not understand why the two values in Line 9 are not equal. There is no link to an explanation and the “Forms Help” does not address this issue; we cannot find any basis in IRS Pub 590 for initially dividing Line 8 into anything other than two equal parts.

We have changed the smaller part to half of Line 8, whereupon the larger part correctly adjusts itself to the same value.

What is the tax-law basis for the initial calculated values in Line 9?

Thanks…

The reply:

Dear TaxACT(R) Customer:

Initially the TaxACT program will divide the amount proportionately to income.  If you follow the questions and answers through to complete your return, you are prompted to make the needed adjustment.

Now, as it happens, there dosn’t seem to be any division of our income that produces the observed difference; it’s not obvious how TaxAct defines “income” for this purpose.