I have 2 1099 Rs and they total $17388. Both are box 7 code 4. One is not being taxed fully on line 4 of the 1040. Any thoughts?

[Just-Lisa-Now-]

Does the client have some non deductible IRA basis on Form 8606 thats offsetting the taxable amount?

[Camp1040]

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- · Accepted solution]

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.

[simensonka]

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