Line 4a, 1040SR

[ontimen10]

I'm using TurboTax 2023 Desktop. I downloaded all my 1099-R information from the brokers. They look to be correct. I took a $75000 IRA distribution that was fully taxable. No non-deductible contributions. That keeps being placed on line 4a. We also took a small amount from my wife's IRA and converted it to a Roth. This IRA did have non-deductible contributions.

TurboTax keeps putting the total of BOTH on line 4a, when it should only be my wife's, as I understand it. We are filing jointly.

[JulieS]

No, line 4a shows the box 1 amount from all 1099-R forms in your return that have a check mark for the IRA/SEP/SIMPLE box. Based on what you are saying that includes both distributions.

Line 4b shows the amount that is taxable on your return. 

The IRS does it this way to make it easier for the computer to tell if you reported all of your 1099-R forms. 

[ontimen10]

Thank you. I get that, but why is my fully taxable IRA distribution showing on Line 4a? My IRA Distribution didn't meet any of the exceptions.

I would expect only my wife's distribution to show there, since there were exceptions there.

[JulieS]

Box 4a includes all 1099-R form distributions from IRAs, regardless of exceptions, whether they are taxable, whether they are converted or rolled over, or any other conceivable situation. 

This helps the IRS match the 1099-R they receive to your tax return. If you somehow altered your return to not include your IRA distribution in box 4a, you would get an IRS letter asking why you didn't include it on your tax return. 

[ontimen10]

OK, so, since the 1040 doesn't give me a Line 4a, and a second 4a for my wife, it lumps both of our IRA stuff into a single Line 4a entry. If either of us has an exception, the totals for both of us will then show in 4a? Am I getting it? Thank you again!

[VolvoGirl · Accepted solution]

You're almost there.  Yes all the lines on the 1040 are for both of you combined.  Line 4a & 5a is the gross distributions from 1099R line 1.  Except if 4a is the same as taxable amount on 4b then 4a won't be filled in.  Same for line 5.  The IRS says in the 1040 instructions......Except as provided next, leave line 4a blank and enter the total distribution (from Form 1099-R, box 1) on line 4b.

It's also possible for line 4a or 5a to have less than line 4b/5b if one of the 1099R gross and taxable amount are the same.  That might be confusing so just ignore it.  

[ontimen10]

Thank you again. I had pored over the IRS instructions, but they didn't make clear that both of our totals would be in 4a, even if only one of us had an exception.