topic My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income in 4b on the 1040. Is this a program or an entry issue? in Retirement tax questions

My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income in 4b on the 1040. Is this a program or an entry issue?

RogerS1 — Sun, 02 Feb 2020 00:22:03 GMT

There is a QCD but it is only a portion of the RMD and therefore I would expect the net amount to be included in the AGI.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income in 4b on the 1040. Is this a program or an entry issue?

dmertz — Sun, 02 Feb 2020 00:50:33 GMT

If you have basis in non-deductible traditional IRA contributions, be sure to click the Continue button on the Your 1099-R Entries page and answer the additional questions, in particular that one that asks for your year-end balance in traditional IRAs.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income in 4b on the 1040. Is this a program or an entry issue?

RogerS1 — Sun, 02 Feb 2020 16:37:45 GMT

Hi Dmertz,

Thank you. I think your answer is putting me on the right track as I have basis. Do I enter the percentage distribution on line 8 of the 1099R and if yes how do I calculate it? I did not see the question you refer to bellow "answer the additional questions, in particular that one that asks for your year-end balance in traditional IRAs." Your help is much appreciated,

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

DianeC958 — Sun, 02 Feb 2020 17:06:37 GMT

It is an entry issue. Since you have a QCD from your IRA the amount that went to the charity is not taxable and would not show on line 4b.

The amounts in Box 1 and Box 2 of your 1099-R should be different based on the amount of the QCD. The amount in Box 2 carries then to Line 4b and adds to your taxable income.

If you have basis in the IRA there should an amount in Box 9b the amount is your basis in the IRA, if that amount is there TurboTax will calculate the taxable amount using that information.

Link to more information about IRA Frequently Asked Questions

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Sun, 02 Feb 2020 23:39:21 GMT

Many thanks for your answer, but I have now tried for many hours to play with the entries by for instance omitting the QCD but I still can't get any amount to show on line 4b as taxable income. I tried to override and enter the amount directly but it seems that overriding is no longer feasible. I also compared to 2018 which was working correctly and while the input are exactly the same after I forget about the QCD, it does not work for 2019. Any suggestions? Thank you.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

ColeenD3 — Sun, 02 Feb 2020 23:50:19 GMT

You can try deleting the form and starting from scratch. It may be that just clearing entries isn't totally removing everything.

To Delete a Form

Open your return in TurboTax.

In the left side bar, select Tax Tools> Tools.
In the pop-up window Tool Center, choose Delete a form.
Select Delete next to the form/schedule/worksheet and follow the onscreen instructions

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Mon, 03 Feb 2020 00:05:28 GMT

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Mon, 03 Feb 2020 00:08:16 GMT

I am not sure what the screenshot I just posted as I can actually see the 8606. I have indeed many time deleted and input it again but to no avail.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

MaryK4 — Mon, 03 Feb 2020 00:10:36 GMT

This just means that the IRS has not finalized the form officially so you will not be able to file until TurboTax gets the go ahead from the IRS.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Mon, 03 Feb 2020 00:13:58 GMT

So is this why the taxable portion of the RMD is also not showing up on the 1040 nor getting into the computation?

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

dmertz — Mon, 03 Feb 2020 04:11:31 GMT

Does line 6 of your Form 8606 show your year-end balance in traditional IRAs? If not, refer back to my original answer that indicates how to enter that.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Mon, 03 Feb 2020 18:24:52 GMT

No, it's blank but I can't enter the value yet. I assume it is because the form has not yet been approved by the IRS and I have to wait until Feb 12 per the above screenshot. Thank you.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

dmertz — Mon, 03 Feb 2020 20:11:23 GMT

Nothing prevents you from entering the year-end value now as I previously indicated and TurboTax will put on line 6 whatever value you enter. You must click the Continue button on the Your 1099-R Entries page to reach the page that asks this question.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Mon, 03 Feb 2020 22:27:45 GMT

Well, I was able to enter 12/31/2019 on line 6 by using an override function by continuing, but nothing appears in line 4b... Looks like the form is not yet working as it should until Feb 12. Thank you anyway.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

dmertz — Tue, 04 Feb 2020 00:32:06 GMT

Overriding line 6 is an improper way to do this, particularly when there is a correct way that's just as easy. If you are able to do an override of line 6, you are apparently using the CD/download version, not the online version indicated in the tag on the original question, so instead of overriding, in forms mode you would enter the year-end balance on line 18 of the IRA Information Worksheet and it will then propagate to line 6 of the Form 8606. Line 18 of the IRA Information Worksheet is is where TurboTax would put your year-end balance if entered it in step-by-step mode.

Re: My taxable RMD from an IRA shows up in 4a but somehow it does not carry into taxable income i...

RogerS1 — Tue, 04 Feb 2020 03:54:10 GMT

Thank you for your steadfastness. While I have the online version, I did what you suggested and it worked! Bravo!