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Level 1
posted Jan 23, 2023 6:18:39 PM

Why is Fully taxable IRA distribution, listed as "Taxable amount not determined", and TT did not list the income in total amount distributed?

How do I correct an IRA distribution as being taxable?

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1 Best answer
Level 15
Jan 23, 2023 7:20:44 PM

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

Does box 2a show the same amount as is in box 1?

 

The traditional IRA custodian is required to marking box 2b Taxable amount not determined for any regular traditional IRA distribution because the custodian has no way to know how much basis you might have in nondeductible traditional IRA contributions that would reduce the taxable amount.  It's your responsibility to properly determine the taxable amount on your tax return, either the full amount being taxable or, if your have nondeductible traditional IRA contributions, calculating the taxable amount on Form 8606.

 

For a regular distribution from a traditional IRA, box 2a of the Form 1099-R must also show the same amount as is in box 1 and have the IRA/SEP/SIMPLE box marked.

 

If you indicate that the  entire distribution was rolled over, TurboTax will exclude the entire amount from your AGI.

 

If box 2a does not show the same amount as is in box 1, perhaps the account is not an IRA (which would be indicated by the IRA/SEP/SIMPLE box not being marked.

3 Replies
Level 15
Jan 23, 2023 7:20:44 PM

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

Does box 2a show the same amount as is in box 1?

 

The traditional IRA custodian is required to marking box 2b Taxable amount not determined for any regular traditional IRA distribution because the custodian has no way to know how much basis you might have in nondeductible traditional IRA contributions that would reduce the taxable amount.  It's your responsibility to properly determine the taxable amount on your tax return, either the full amount being taxable or, if your have nondeductible traditional IRA contributions, calculating the taxable amount on Form 8606.

 

For a regular distribution from a traditional IRA, box 2a of the Form 1099-R must also show the same amount as is in box 1 and have the IRA/SEP/SIMPLE box marked.

 

If you indicate that the  entire distribution was rolled over, TurboTax will exclude the entire amount from your AGI.

 

If box 2a does not show the same amount as is in box 1, perhaps the account is not an IRA (which would be indicated by the IRA/SEP/SIMPLE box not being marked.

Level 1
Jan 23, 2023 8:12:09 PM

Thank you DMertz level 15!  

I understand that the possibility of having non-deductible contributions is the cause of the discrepancy.  Alas, more taxes to be paid!

 

Level 15
Jan 23, 2023 11:07:17 PM

Taxable amount is not determined for an IRA, because the custodian cannot know if you have a basis in IRAs or not.

 

@cwlfal891