I paid taxes on my Traditional IRA contributions using money from my paycheck; How do I enter the distributions when I file my taxes so that i won't be taxed again?

I already paid taxes on my Traditional IRA contribution. How do I enter the distributions so that i won't be taxed again? This is a Traditional IRA account; not a Roth and never was a Roth. I've been contributing to a Traditional IRA at my credit union for several years. Next year when I start taking minimum distributions, how do I enter them when I file my taxes? Doesn't the IRS know how much I contributed and won't they expect me to pay taxes on the money? They won't know that I already paid taxes on the $$.

1023

Expert Alumni

Jun 6, 2019 7:27:39 AM

If you already paid taxes on your Traditional IRA, then it was a Nondeductible IRA and reported on Form 8606 - Internal Revenue Service.

See also What are Traditional IRA to Roth IRA conversions?

Next year, when you enter your 1099-R form, you will be to enter that you made Nondeductible Contributions to your IRA and TurboTax will exclude them from taxable income.

[Edited 3-12-2020|12:58 pm PST]

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I paid taxes on my Traditional IRA contributions using money from my paycheck; How do I enter the distributions when I file my taxes so that i won't be taxed again?