Thanks for the reply. Unfortunately I think my question wasn't clear. What I want to know is how do I get the taxable amount? Box 1 has the gross distribution amount, box 2 has taxable amount (UNKNOWN). Does the "simplified method" calculate a "tax free" amount that is subtracted from box 1, giving a taxable amount for box 2? Or is it added to the previous year's amount and THEN subtracted from box 1 (?) which gives the taxable amount that belongs in box 2?
Or what DOES the "simplified method" calculate?
