topic Re: 1099-R in Retirement tax questions

1099-R

Mancinobaby — Wed, 18 Mar 2020 19:00:56 GMT

My wife and I each received a 1099-R Form listing the amount that we pulled from the account in 2019 tax year. The amount that we pulled is the contributions that each of us have added in 2015-2017. Even though we are under the age of 59 1/2 and don't satisfy any of the other exemptions that we used the money for, my tax advisor told me that we shouldn't pay taxes because we are pulling back our contribution. However, I am not able to enter it in a way for Turbo Tax to recognize the amount as not taxable. Can you please instruct me how to enter it.

Re: 1099-R

VolvoGirl — Wed, 18 Mar 2020 19:03:43 GMT

No that's not right. What kind of IRA Account? Was it from ROTH IRA? @dmertz

Re: 1099-R

dmertz — Wed, 18 Mar 2020 21:35:01 GMT

Since the circumstances suggest that these were a distributions was from IRAs, be sure to click the Continue button on the Your 1099-R Entries page and answer the additional questions needed to prepare Form 8606 for each of you.

Re: 1099-R

Mancinobaby — Thu, 19 Mar 2020 19:16:50 GMT

Yes it is a Roth IRA

Re: 1099-R

Mancinobaby — Thu, 19 Mar 2020 19:18:37 GMT

The 8606 form isn't coming up. I will continue to try.

Thank you for your help

Re: 1099-R

JohnB5677 — Thu, 19 Mar 2020 19:42:10 GMT

You will have to indicate that you had made prior ROTH contributions.

Deductions & Credits
I'll choose what I work on
Scroll to Retirement and Investments
Select Traditional & ROTH IRA contributions
Select account owner
No you didn't make a 2019 ROTH Contribution
Did you withdraw prior to 2019 - Probably No
Enter Prior Year ROTH IRA Contributions.

Enter the total of all prior ROTH Contributions. You will not be taxed on the contributions, but if you had additional earnings they would be taxable.

Re: 1099-R

dmertz — Thu, 19 Mar 2020 19:45:28 GMT

If you aren't getting From 8606, you haven't entered the Form 1099-R correctly. TurboTax will always create From 8606 when you enter a code J Form 1099-R; code J (by itself) means that Form 8606 Part III is required to be present in your tax return.

Re: 1099-R

Mancinobaby — Sat, 21 Mar 2020 20:15:35 GMT

Thank you for the step to step answer. It satisfied the missing information.

Thank you again

Re: 1099-R

Mancinobaby — Sat, 21 Mar 2020 20:17:46 GMT

thank you for your helpful advise. I was able to get through the federal return.