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]

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?

[qbteachmt · Accepted solution]

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

[gg4tigers]

Yes client has Basis in Traditional IRS

[qbteachmt]

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.

[gg4tigers]

Thanks, I will see if I can still do the math, been depending on software for a long time.

[qbteachmt]

You make the entries and the form does the math.