1099R IRA Distribution

[jpcard6192]

I'm entering a 1099R form into ProSeries that I know is taxable income to the taxpayer.  Proseries treats it as taxable until I check off the IRA box on the form - then it treats the distribution as non-taxable?  Has anyone else come across this issue?  I have several other clients that I have had no problem with, but this one is driving me crazy!

[dmertz]

The result implies that the individual has basis in nondeductible traditional IRA contributions and that the individual's year-end balance in traditional IRAs is zero or has not been entered, resulting in the calculation on Form 8606 Part I showing that $0 of the distribution is taxable.  Check the information regarding the basis and year-end value of traditional IRAs.