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

[ilovelynnforever]

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

[TaxGuyBill]

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

[poolcleaner]

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?

[poolcleaner]

TaxGuyBill's answer is probably correct.

[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.

[Sma]

I have removed and re-entered the 1099R a couple times and even put in fake ones.  Same result - showing non- taxable. 

[PATAX]

I think you are right tax guy Bill. I just finished a return with many 1099-r forms and had absolutely no issues with Pro Series.. Just my opinion.

[IRonMaN]

@poolcleaner  - nice to see you out and about. Are you thawed out yet from the lovely Texas weather?  I hope those pool boys of yours bundled up appropriately.