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RMD and 1040 don't match? My client has required minimum distribution from IRA, but the final form lists less then the taxable amount on the 1099-R, how do I correct?

gg4tigers
Level 1

1099-R show dollar amount taxable, but the 1040 form shows only a portion of that amount as taxable? what is the problem and can I override to equal taxable amount?

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qbteachmt
Level 15

Does your client have Basis in Traditional IRA(s)?

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5 Comments 5
qbteachmt
Level 15

Does your client have Basis in Traditional IRA(s)?

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Don't yell at us; we're volunteers
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gg4tigers
Level 1
Yes client has Basis in Traditional IRS
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qbteachmt
Level 15
Then the taxable amount has to be determined from all of the traditional IRA accounts, using the total Basis against the total FMV at year end, for the % of distribution(s) that is and is not taxable. You can do that math, and you can look at form 8606 to see how it uses the 1099-R data for that calculation.
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gg4tigers
Level 1
Thanks, I will see if I can still do the math, been depending on software for a long time.
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qbteachmt
Level 15
You make the entries and the form does the math.
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Don't yell at us; we're volunteers
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