My financial advisor said that the inheritance was not taxable but when I select the I inherited this IRA it is calculating that I owe! I did receive a 1099R. In the Do any of these situations apply to you do I not select I inherited this IRA?
We'd love to help you complete your tax return, but need more information. Can you please clarify your question?
No, the fact that you inherited the account is not making it taxable. What code do you have in box 7 of your 1099-R?
Distribution code 4 IRA/Sep Simple has an x
Sorry clueless on how to add this to my taxes properly
Yes, the code is the reason this shows as taxable. Code 4 means this is a distribution from a traditional account (not Roth) that was made due to the death of the original owner.
If the original account was a Roth account, the box 7 code is wrong. If that's the case you need to contact the payer of the 1099-R to get a correction.
You say that you reinvested the money. Does that mean you rolled it over to another IRA?