Paying tax on Required Minimum Distribution? E.g. distribution is $10,000 and I've paid tax on $12,000 w/ 8606. Can I choose to not pay tax by using part of the $12,000?

[Need8601]

@dmertz I am grateful for your helping me out with your expertise and time.  To me the IRS documents are often complex and not to the point, but you explain things clearly in a way that I can understand.  Thank you.

[dmertz]

The benefit of the IRS documents is that they are generally worded very carefully with an effort made to reduce ambiguity and to cover all of the scenarios.

[Need8601]

@dmertz For 2017 tax return I entered into TurboTax the total of non-deductible amounts from my 8606 forms.  For next year's (2018) tax return what do I do please?

[dmertz]

Whatever amount is on line 14 of your 2017 Form 8606 will transfer to line 2 of your 2018 Form 8606 to be used in calculating the taxable amounts of any traditional IRA contributions.  TurboTax will transfer this amount automatically when you transfer your 2017 tax file into 2018 TurboTax to begin your 2018 tax return.

[Need8601]

@dmertz thank you.

[Kavekreeker]

Thumbs up to @dmertz but thumbs down to the IRS.

Stupid me thought I could apply my entire 2018 non-deductible cost basis to my 2021 normal distribution.  But noooo, the sneaky b@st@rds spread it out to the last drop.

All members of Congress should be required to do their own taxes on paper using only publications - no third-party help or software.

[fanfare]

@Kavekreeker 

The rules on Form 8606 have been around forever.

The only thing Congress has changed recently is raising the tax on IRAs by eliminating Stretch IRAs.

[dmertz]

Right.  Congress made the law requiring proportionate application of basis to IRA distributions.  The IRS is just following the law in the way that they constructed Form 8606, so don't blame the IRS.