simensonka
Level 2
‎04-11-2021 10:29 AM
 
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Just-Lisa-Now-
Level 15
Level 15
‎04-11-2021 11:22 AM
Does the client have some non deductible IRA basis on Form 8606 thats offsetting the taxable amount?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Camp1040
Level 11
‎04-11-2021 12:52 PM

Code 4 is due to death, there might be an amount in box 5, but generally the full amount of amount in box 1 should carry to the 1040 line 4.

Just-Lisa-Now-
Level 15
Level 15
‎04-11-2021 01:17 PM
I thought I remember seeing earlier this season that the IRA basis on an 8606 was getting used against Code 4 in error....I havent had any with this situation so I dont have any first hand experience with it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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simensonka
Level 2
‎04-13-2021 06:03 AM

This was the issue.  A basis in a roth was being subtracted.  

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