Is the income on my 1099-R form nontaxable on our joint return with my deceased husband if Box 7 code is "4" (death) as I inherited this 2017 RMD along with his IRA?

[Nokomis--FL]

Turbo-Tax hasn't counted this income. I'm guessing this could be the reason?

[KittyM · Accepted solution]

It's more likely that the 1099-R is being treated as Non-Taxable because Box 2a is blank. 

If Box 2b is marked "Taxable Amount Not Determined," then the amount in Box 1 of your 1099-R should be entered in Box 2a, unless you have information to indicate a different taxable amount.

If the box for "Taxable Amount Not Determined" is not checked, then the custodian of your husband's account has determined you RMD is not taxable.

My condolences on your loss.

[Nokomis--FL]

I inherited the RMD for 2017from husband's retirement IR. This $ is shown in box 2a, Fed income tax withheld is shown in box 4, box 7 code is "4" but TT didn't consider this income, so it refunds all tax  withheld plus.

[Nokomis--FL]

I suppose I'm questioning this TT decision. just doesn't "feel" right, since our broker withheld the tax

[KittyM]

The tax is required to be withheld, even though you may get a refund of all of it.  I'm not sure why you are getting even more, but there are several reasons why the IRS will add to your refund, especially if YOU are still working.

[Nokomis--FL]

Thank you! TurboTaxKitty. So you think this first required distribution is probably non-taxable?

[KittyM]

What is in Box 2b?

[Nokomis--FL]

both boxes are checked," Taxable amount not determined" and "Total distribution"

[macuser_22]

If you are properly entering the 1099-R the entire amount will be taxable income on line 15b on the 1040 form (line 11b on 1040A).
Be sure the IRA/SEP/SIMPLE box is checked.

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.]

[Nokomis--FL]

This 1099-R is in my name. Both Box1 and Box 2a show the same full $amount that was my husband's 2017 RMD from his IRA, which I inherited. This 1099-R is in my name, and of course I'm filing jointly. He died on Jan 1st.

[Nokomis--FL]

thank you, macuser! (and TurboTaxKitty)  I think I get it. I sure thought I'd have to pay that tax!

[macuser_22]

Of course you have to pay the tax.  The box 1 and 2a amount is fully taxable. As I said, the box 2a (taxable amount) should be on the 1040 form line 15b.  If it is not, then  you entered the 1099-R incorrectly and should delete it and re-enter.

[Nokomis--FL]

will do, and again, thanks

[Nokomis--FL]

okay,I re-entered form 1099-R,answering the questions asked. The Federal tax withheld was frm my husband's IRA. My IRA received only the balance amount. I still dont get it, but I'm filing in the forms truthfully the best I'm able, and as filled in by the Payer and TurboTax

[macuser_22]

What do your mean "your IRA received the balance amount"? Do you mean that you rolled it into your own IRA and did not take the cash? If that is what you did then none of it will be taxable and it should say ROLLOVER on line 15a and line 15b zero. You did not indicate that you rolled it into your own IRA before. That makes all the difference.