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sandnov22
New Member

If line 1-2a show taxable amt & 2b on 2018 1099R is checked, "Taxable amt not determined." Will Turbo Tax software automatically calculate tax owed for Federal & State?

 
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dmertz
Level 15

If line 1-2a show taxable amt & 2b on 2018 1099R is checked, "Taxable amt not determined." Will Turbo Tax software automatically calculate tax owed for Federal & State?

With box 2a equal to box 1 and box 2b Taxable amount not determined marked, this is apparently a regular distribution from a traditional IRA (code 1, 2 or 7 in box 7 and the IRA/SEP/SIMPLE box marked).  TurboTax will treat the entire amount as taxable unless you have basis in nondeductible traditional IRA contributions, entered after clicking the Continue button on the Your 1099-R Entries page and answering the additional questions accurately.  If the distribution is an early-distribution, indicated by code 1 in box 7, TurboTax will also calculate the 10% early-distribution penalty on the taxable amount.

TurboTax will also give you credit on your tax return for any tax withholding shown in box 4 of the Form 1099-R.

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1 Reply
dmertz
Level 15

If line 1-2a show taxable amt & 2b on 2018 1099R is checked, "Taxable amt not determined." Will Turbo Tax software automatically calculate tax owed for Federal & State?

With box 2a equal to box 1 and box 2b Taxable amount not determined marked, this is apparently a regular distribution from a traditional IRA (code 1, 2 or 7 in box 7 and the IRA/SEP/SIMPLE box marked).  TurboTax will treat the entire amount as taxable unless you have basis in nondeductible traditional IRA contributions, entered after clicking the Continue button on the Your 1099-R Entries page and answering the additional questions accurately.  If the distribution is an early-distribution, indicated by code 1 in box 7, TurboTax will also calculate the 10% early-distribution penalty on the taxable amount.

TurboTax will also give you credit on your tax return for any tax withholding shown in box 4 of the Form 1099-R.

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