cowboys15
Level 2
12-07-2019
08:04 AM
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Client took a distribution from a non deductible IRA. He contributed the money back in 2005 thru 2007, Basis $8000. Took the total IRA valued at $16644. The 1099R shows 16644 total, 16644 Taxable, with code 7. Form 8606 has been filed in previous years, showing the 8000. How do I show this in Lacerte, so that he is not taxed on the whole thing?
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George4Tacks
Level 15
12-07-2019
08:04 AM
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Screen 24 Form 8606 (Part I) should already have the IRA basis for 2017 and earlier years. ($8,000)
Screen 13 Form 8606 in the lower left Section - be sure to enter the Value of alll.... as on 12/31/18. (Use -1 for Zero, if appropriate)
Assume they ONLY had that one non deductible IRA, the $8,644 should show up as the taxable portion.
Answers are easy. Questions are hard!
cowboys15
Level 2
12-07-2019
08:04 AM
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He did only have the one... However, I put -1 in screen 13 lower section because the value as of 12/31/18 was zero... He actually took the money in September... I even tried putting in the 16644 in that field... the taxable amount is still 16644. What am I doing wrong?
George4Tacks
Level 15
12-07-2019
08:04 AM
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Did you check the box for IRA in Screen 13?
Answers are easy. Questions are hard!
Answers are easy. Questions are hard!
cowboys15
Level 2
12-07-2019
08:04 AM
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Duh! Thank you so much!
