@nahartl wrote:
I took my first IRA distribution of $24K and closed that account. Of these funds, $8000 was contributed ($2000 for each tax year (1988, 89, 90, &91). They were non deductible contribution amounts due to income levels. The 1099-R has box 2b checked (Taxable amount not determined). I was trying to reduce my gains associated with the distribution by this amount but can't determine how. I don't believe I owe taxes on the full $24K distribution.
Enter as below:
I hope you have your 1991 8606 form that shows the total non-deductible contributions on line 14 to enter and you filed 8606 forms for your 1998-1990 with your tax returns. Without filing 8606 form your non-deductible contributions can be denied.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
You will be asked of you had and tracked non-deductible contributions - say yes. Then enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2020.
That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.
NOTE: If there is an * next to line 15 then 6-15 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
