Is the MAGI Worksheet in Publication 590-A Wrong?

Submitted by David Manteau on Fri, 2019-12-06 17:53

On worksheet 1-1 (Figuring Your Modified AGI), the instructions leave out Line #7 (employer-provided adoption benefits) to determine your MAGI for traditional IRA purposes. This appears to be wrong instructions as indicated by the rep I spoke to at the IRS. Instead, she indicated that actually line #3 (domestic production activities deduction (DPAD)) may have been intended to be eliminated. However, she is not sure if both of these are misprints, mistakes, or not.

Does anybody here know about this?
Thanks!

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Permalink Submitted by Alan - IRA critic on Fri, 2019-12-06 19:05

With respect to the domestic production activities deduction, the TCJA eliminated it starting in 2018, so it should have been eliminated from the 2018 Pub 590 A, p 14 and Worksheet 1-1. The adoption benefits correctly appear in the MAGI adjustments list on p 14 and the worksheet in Pub 590 A. The 2019 590A has not bee released yet. Are you looking at a different source, since you indicated that line 7 was omitted?

Permalink Submitted by David Manteau on Mon, 2019-12-09 14:21

Thank You Alan!

Permalink Submitted by David Mertz on Fri, 2019-12-06 19:31

Worksheet 1-1 in 2018 Pub 590-A is correct with respect to domestic production activities. A taxpayer can have an adjustment included directly on Schedule 1 line 36: “Fiscal-year pass-through entities that have a domestic production activities deduction generated in a tax year beginning before December 31, 2017 (see Form 8903). Identify as ‘DPAD’.” However, I would expect this line of the worksheet to be gone in 2019 Pub 590-A (which has not yet been released and is not yet in the online draft publications).

Permalink Submitted by David Manteau on Mon, 2019-12-09 14:22

Thank You DMx!

Permalink Submitted by David Mertz on Mon, 2019-12-16 14:51

The draft of 2019 Pub 590-A made available on December 11 indeed shows that lines referring to DPAD have been removed.