I did exactly as you indicated, deleted the 1099R, split it into two identical 1099Rs except for: $100,000 in Boxes 1 and 2a for the ROTH conversion, answered questions and an 8606-T was created with Part II completed; the other 1099R has $25,000 in Boxes 1 and 2a, and I indicated in questions that I took cash. I answered all the questions after Continue at the bottom of the 1099R screen. Unfortunately, the $25,000 STILL does not show on Line 4b!
I went back, deleted the $25,000 1099R and entered it again. I carefully watched the Federal REFUND box at the top of my screen and as soon as I entered $25,000 into Boxes 1 and 2a, the refund went from $15,000+ to $9,000+. However......as soon as I checked IRA/SEP/SIMPLE, the refund went back up to $15,000. If I don’t check the box and Continue to the next page it asks if I forgot to check the box.
There is no “basis” in this IRA. It passed into my name when my husband died on 02/24/2020. He did not take a distribution from it in 2020. The 1099R is in my name and Box 7 has a 7 in it. What do you think is the problem? I did not contribute to the IRA. I did not mark this distribution as an RMD. There has not been an 8606 in our returns since 2016 because there was never a basis in my IRA and my deceased husband’s basis ran down to zero in 2016. Neither of us have made any kind of contribution to anything since he retired in 1997 so TT cannot think I have a “basis”. IT IS ALL TAXABLE. Please help me figure this out so I can file after 33 days because I still haven’t started my state returns.
