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posted Jun 4, 2019 5:04:31 PM

How do I get Turbotax to calculate the taxable amount of an IRA distribution (form 1040 line 4b)? The cost basis and end-of-year value of my IRA account are on form 8606.

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1 Replies
Level 15
Jun 4, 2019 5:04:33 PM

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

When asked if you have made any non-deductible contributions say " "yes" if you did then enter the non-deductible contributions made for tax years before 2018.      If you do have prior year basis then enter the last filed 8606 line 14 value.).

Enter the 2018 total year end value of all Traditional IRA, SEP and SIMPLE IRA's.

The non-deductible amount of your contribution will be calculated on a new 8606 lines 6-15.