@DaveF1006 or @dmertz Anyone...please help. I'm at a loss trying to figure this out. We sold a Traditional IRA and closed the account in 2024. No contributions made. 1099-R Box 2a has the "Taxable Amount" wrong (so I don't want to pay extra tax on money that was ours--part of the actual Basis.)
I'm at a loss trying to figure out how to get that basis number corrected. I know I can't change the 1099-R, but cannot find any worksheets or forms available to me. In searching TurboTax, Form 8606 came up, but I don't have access to it and it looks like more for a backdoor roth on contributions.
I really need guidance please. I don't usually wait until the last minute, but mother died recently and still need to do her taxes also after I figure this out. Can't afford to extend with a wedding in a few weeks and mom's estate to deal with either. Online you both sound like you know what you're doing! Guidance please.
A Form 1099-R for an ordinary distribution from a traditional IRA is required to show the same amount in box 2a as is in box 1. When you have basis in nondeductible traditional IRA contributions, the nontaxable and taxable amounts are instead calculated in Part I of Form 8606.
On the page that lists the Forms 1099-R that you have entered, click the Continue button, then, when asked, answer Yes that you made nondeductible contributions to your traditional IRAs, then enter the amount of your basis and your year-end balance in traditional IRAs. With this information, TurboTax will prepare Form 8606, include the gross distribution amount on Form 1040 line 4a and only the taxable amount on line 4b.
A Form 1099-R for an ordinary distribution from a traditional IRA is required to show the same amount in box 2a as is in box 1. When you have basis in nondeductible traditional IRA contributions, the nontaxable and taxable amounts are instead calculated in Part I of Form 8606.
On the page that lists the Forms 1099-R that you have entered, click the Continue button, then, when asked, answer Yes that you made nondeductible contributions to your traditional IRAs, then enter the amount of your basis and your year-end balance in traditional IRAs. With this information, TurboTax will prepare Form 8606, include the gross distribution amount on Form 1040 line 4a and only the taxable amount on line 4b.
Thank you! Also, I thought we could add to our basis the annual account fees (like stock purchase/sale and annual fees are added to an account's basis)? In reading in TurboTax, it only says "Contributions" that were not originally deductible (nondeductible) are your basis?
I very much appreciate your help!
Brenda
fees are not deductible if paid by the IRA
fees paid outside of the IRA are not deductible at this time.
any distribution is treated as ordinary income.