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Retirement tax questions
@avian99
Right. I pointed out the relevant IRS instructions over a month ago, but the TT folks willfully ignore it and keep bringing up the IRS instructions for fully taxable distributions.
For IRA's: "If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 4b. Enter the total amount of those distributions on line 4a." (page 29 of IRS 1040 instructions)
For Pensions: "If you had more than one partially taxable pension or annuity, Figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040, line 4b. Enter the total pension or annuity payments received in 2018 on Form 1040, line 4a." (page 31 of IRS 1040 instructions)
Unfortunately, there are no IRS instructions that specifically cover mixed IRA and Pension distributions. You might think that common sense would inform TT folks that Line 4a should never be less than 4b, but you would be wrong.
Right. I pointed out the relevant IRS instructions over a month ago, but the TT folks willfully ignore it and keep bringing up the IRS instructions for fully taxable distributions.
For IRA's: "If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 4b. Enter the total amount of those distributions on line 4a." (page 29 of IRS 1040 instructions)
For Pensions: "If you had more than one partially taxable pension or annuity, Figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040, line 4b. Enter the total pension or annuity payments received in 2018 on Form 1040, line 4a." (page 31 of IRS 1040 instructions)
Unfortunately, there are no IRS instructions that specifically cover mixed IRA and Pension distributions. You might think that common sense would inform TT folks that Line 4a should never be less than 4b, but you would be wrong.
‎June 4, 2019
12:24 PM