My sister and I inherited an IRA from my mother.  We took the total contribution, so we have to pay taxes on it.  We both received a 1099R which said 50% in Box 9a, "Your percentage of the total distribution".

I was surprised to see the full amount on line 4a of Form 1040.  My assumption is I need to pay taxes on 1/2 of the distribution, as does my sister.  It makes no sense to me that we should both pay taxes on the full amount.

This seems like a bug in Turbo Tax.  My inclination is to do the 50% percentage myself, on line 4a.

Wouldn't that be correct??