The distributions are from 2 different firms and were imported directly into TurboTax. I know that only the $20,000 is supposed to be non-taxable but I am not sure why TurboTax did not process the import properly. Help!
Why is any amount nontaxable? Are you asking in regard to a state tax return?
Were these IRAs inherited from the same decedent?
Do both of the Forms 1099-R have code 4 in box 7 and the IRA/SEP/SIMPLE box marked?
Thanks for your reply. Yes, I am asking with regard to my New York State return. Both 1099-Rs have Code 4 and the IRA box checked. These were inherited from 2 decedents. New York has a $20,000 IRA income exclusion for those over 59 1/2 and I am in that category.
Someone else might be able to help with a NY tax return, I can't.
Thanks for trying, hopefully a New York State expert will review my question.
NY does have a $20,000 exclusion but it is per decedent. Since you inherited the money, you have to mark what percentage of the money is your share of the decedents total. Let me give you an example. You and a sibling could have inherited all the money. Then your share is 50% of the income and 50% of the $20,000 exclusion. NY can't let everybody get the full amount or they would be losing money.
You have to tell the program your share. Please follow the steps I created with screenshots here.