@danpaul22 wrote:
I was able to isolate the issue. Turbo tax did an incorrect calculation of the taxable amount of distributed IRA / Pension. He took my contribution for traditional IRA and subtracted it from my taxable amount for my distribution. The result: The taxable amount does not match what is reported on the 1099-R. Whoops
That's the "basis" of your IRA, and is how the taxable amount is supposed to be calculated. If you made non-deductible contributions, those were already taxed on the way in, so they don't get taxed on the way out. Your earnings, or pre-tax contributions do get taxed. As I understand it, the financial institution which holds your IRA generally doesn't track your basis, but you (and TT on your behalf) can do so and deduct it when doing a conversion.
