topic Capital Gains in Retirement tax questions

Capital Gains

Kardnoll — Tue, 07 Apr 2020 18:48:11 GMT

Took money out of our IRA, we are both retired , and TurboTax wants me to fill out Capital Gains form ????? Never got any form but 1099-R.

Re: Capital Gains

BillM223 — Tue, 07 Apr 2020 19:10:11 GMT

What is TurboTax asking in terms of Capital Gains? You don't pay capitals gains on either traditional IRA distributions or Roth IRA distributions. In the former case, you pay ordinary income tax rates and in the latter case, you don't pay any income tax at all so long as the distribution was qualified.

Oh, you are referring to box 3 on the 1099-R. Is there a number in it? There shouldn't be. Just enter the 1099-R as is.

Re: Capital Gains

Kardnoll — Tue, 07 Apr 2020 19:32:17 GMT

It wants me to fill out a Capital Gains work sheet and it keeps showing me an error for not doing it ! (there is nothing in box 3)

Re: Capital Gains

BillM223 — Tue, 07 Apr 2020 19:37:28 GMT

Silly question - did you auto-import the 1099-R or enter it manually?

If you auto-imported it, I would encourage to write down all the information on the 1099-R, then delete the 1099-R and re-enter it manually.