Hi,
My father recently passed, and I'm helping my mother with her taxes for 2023.
My mother his IRAs at both t Fidelity and at Charles Schwab into her own IRA, and then received 1099-Rs for both of these payments. However, while I have uploaded these forms into TurbTax, the amounts for the RMDs are NOT being included as a part of taxable income.
Is this an issue with TurboTax? User Error? Or am I misunderstanding how an RMD should be included as part of income?
Thanks!
It depends. If you entered the 1099-R forms, including the taxable amounts in Box 2a then TurboTax should handle the rest. If the two were directly rolled over into your mother's IRA then there should be a code G in box 7. If this is the case, then TurboTax knows they are not taxable to your mother in 2023. Her own RMD would be taxable and would not be allowed to be rolled into any plan.
You would file them jointly if your mother has not remarried and your father passed away in 2023. Otherwise your mother would file married filing separately, or single if your father passed away before 2023. I am sending my sympathies to you and your mother.
Please update here if you have additional details or questions and we will help.