100% taxable IRA distribution (inherited IRA, no basis)

Forum|Forum|5 years ago
February 28, 2021
7 replies
23 views

Each year I input my 1099R. I receive this because after my wife's passing, i inherited this traditional IRA. There is no basis.

On 1099 worksheet I enter gross distribution, taxable amount (both same #) check box "taxable amount not determined" , code 4, check IRA box and also under inherited IRA section, check box "Spouse and not treated as own (taxable amount must be in box 2b)

Every year the program places the gross distribution on 1040 line#4b IRA taxable amount. but the 2020 program is placing the gross distribution on 1040 line 4a and 0.00 on 4b. Can you tell me why?

This IRA distribution should be taxable

Thanks

Gary

ProSeries Basic

This topic has been closed for replies.

T

TaxGuyBill

A recent update screwed up IRAs, so it is calculating incorrectly. You probably need to wait for an update to correct it.

P

poolcleaner

Level 8

I just entered everything exactly as you said you had done and it showed the entire amount as taxable The only difference is that I am using ProSeries Professional. Is it possible that you have accidentally entered something else that changed the calculation? Have you tried removing the form and reentering all the information?

P

poolcleaner

Level 8

TaxGuyBill's answer is probably correct.

T

TaxGuyBill

From what a couple of other posters have said, the error is ONLY in Basic, and not in Professional (but I have not tested that part out). That doesn't really makes sense to me because both softwares use the same tax-programming, but that is what they said.

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