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$6000 is only taxable if you withdraw. If that $6,000 was pre tax contribution, then it will be taxable in the year you withdraw along with bank interest. Taxable does not necessarily mean you will pay taxes. For example, your total taxable income (taxable retirement, taxable interest and any other taxable income) is $20,000 and you have itemized deduction of $20,000 or more, you taxable income will be zero since deduction will wipe out all that income and you will not pay any taxes. But let's say your total income is $30,000 instead of $20,000 and itemized deduction is still $20,000, you will only pay taxes on remaining $10,000.   Yes, you are correct, any charitable donations, miles driven will go on Schedule A.    Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful! **Please cheer or say thanks by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer" Regards, TurboTax Expert

If you take money out of your IRA you will receive a 1099R from the financial institution that handles your account.   You must enter that 1099R into your tax return.   Sometimes they mail them, but often you need to go on the account website or you might be able to import the 1099R into the tax software.   Financial institutions usually have 1099R's ready for import by late February.     To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.     If your bank or financial institution is not on the drop down list, click the words “I’ll type it in myself” and key in your information by hand.     See if your financial institution is on the Partner List - If not, you will have to enter the information manually.      

Did you take a IRA Distribution or RMD?  You should get a 1099R form from the IRA account to report it on your personal tax return.  It goes on 1040 line 4a and 4b.  You don't file it separately.  Have you filed your tax return yet?   If you already filed for 2024 you need to amend your return to add a 1099R.  Or are you asking about taking a distribution this year in 2025?     Do you need to enter it? Enter a 1099R under Federal Taxes Wages & Income Then scroll way down to Retirement Plans and Social Security Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start If you are adding another 1099R there might be a Add button at the bottom of the list.

It is a smart move and great financial planning tool to slowing move your traditional nontaxed IRA funds into Roth IRA, especially during years when your income is lower.  By taking this action, you're reducing your future tax liabilities.   Also, if you happen to leave your Roth IRA to your beneficiary, it will be tax-free to your beneficiary.  

Nothing about Social Security has changed. It can still be taxable. There is a new Enhanced Deduction for Seniors of $6,000 for each spouse 65 or older if you qualify. The income limit is 75,000 (150,000 Joint). That is listed separately on your return and is in addition to the Standard Deduction or your Itemized Deductions and is after any Social Security taxable amount on line 6b. The deduction for seniors will be allowed for 4 years, from 2025 through 2028. For Single the Deduction phases out at 175,000 For Joint the Deductions phases out at 250,000 See draft of 1040 Schedule 1-A page 2 part V https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf Sch 1-A line 31 starts with your MAGI from line 3, which is the AGI on 1040 line 11b plus any income from form 2555 lines 45 & 50 plus form 4563 line 11.

Well if you only get SS it is not taxable.  I assume you are Single?  Your Standard Deduction would be 17,750.  So any income over 17,750 will be taxable.  If you take out more than  $9,500 from the 401K it may make some of your SS taxable.  

Why do you think there is no tax on Social Security?   There is a lot of misunderstanding out there----your Social Security is taxable income if you have enough other income from other soruces.  That has not changed.   Tax on SS has not been eliminated by the new tax laws. Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.     What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400   After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.   To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040   https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable   You need to file a federal return if half your Social Security plus your other income is   Single or Head of Household      $25,000 Married Filing Jointly                  $32,000 Married Filing Separately            $0   Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.         IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS   https://www.ssa.gov/manage-benefits/request-withhold-taxes https://www.irs.gov/forms-pubs/about-form-w-4-v        

If you exceed 90% of your 2025 total tax liability, you are likely safe from penalties, even if your IRA distributions and tax payments don’t align perfectly with the quarterly schedule. This is because the IRS treats tax withholdings as if they were paid evenly throughout the year — regardless of when they were actually withheld. So even if you make a large withholding in December, it counts as if it were paid quarterly.   Like the IRS, the FTB treats tax withholding as being made evenly throughout the year. If you meet the CA Safe Harbor threshold using withholding from your IRA, you should avoid the CA underpayment penalty as well.   I would recommend that before the end of the year (and definitely before the January 15th deadline), confirm with your Vanguard custodian the total dollar amount of tax withheld on all your IRA distributions for 2025. Use the IRS Tax Withholding Estimator to check if you're on track.   @turbomjstax Thanks for the question!!    

@dev145  Thank you for your help for "TurboTax's Ask the Expert event" today.   I also have a question. If my pension amount is quite low (lower than $1000 per month), and my traditional IRA amount is also quite low, it is 6000 + bank interests (several hundred dollars), are the $6000 contribution and the bank interests taxable in the next year? And I plan to provide volunteering works in my community. The info and basic cost could be filed in schedule A, right?   Thanks a lot.

You may be required to make estimated tax payments if you have not had enough taxes withheld from your social security and pension income.   You must pay taxes as the income is earned throughout the year, either through tax withholding or quarterly estimated tax payments.  If you have not paid enough taxes when you file your tax return, you may be subject to a tax penalty for underpayment of taxes.   There are a couple of IRS rules to determine whether you are required to make quarterly estimated tax payments. Will you owe less than $1,000 in federal income tax for the year after subtracting total taxes paid and credits from the total amount of tax you estimate for the current year? Will your tax withholding be at least 90% of your total tax for the year or less than 100% of your total tax from your previous year's return?  (In the case where your adjusted gross income  from your previous year's return exceeds $150,000 ($75,000 if you are married filing separately), the 100% requirement increases to 110%). You must make estimated tax payments if you answered no to all of the above questions.   Individuals who earn at least two-thirds of their income from farming or fishing are required to make an estimated payment of two-thirds of the current year total tax amount or 100% of the previous year’s tax. The estimated tax payment deadline is January 15 of the following year.  If the return is filed and total tax paid in full by March 1, there is no requirement to make an estimated tax payment.     The IRS and TurboTax have calculators available to estimate your income, tax liability, total payments and recommended amount for estimated tax payments.   Estimated tax payment deadlines are generally:   1st Quarterly Estimated Tax Payment April 15 2nd Quarterly Estimated Tax Payment June 15 3rd Quarterly Estimated Tax Payment September 15 4th Quarterly Estimated Tax Payment January 15 of the following year If the deadline falls on the weekend or a legal holiday, the deadline is the next day that is not a weekend or legal holiday.   @jimdebmt 

It is correct that the Tax Cuts and Jobs Act in 2017 eliminated conversion reversals, which is what I addressed in the first answer I provided. Your second question was about taking a distribution, then giving yourself 60 days to decide what to do. The TCJA did not eliminate that strategy. I am posting this for clarity's sake, as I do not want others to think that what I had advised was no longer allowed per your AI search.