U.S. Government Obligations Income from IRA distribution

Forum|Forum|3 years ago
February 3, 2023
5 replies
35 views

How do I enter U.S. Government Obligations Income from an IRA distribution (1099-R)? The turbotax easy step form does not offer a place to input this information and I am unable to enter it directly on the forms. I would like to deduct this interest income for my state taxes.

Bsch4477

Level 15

You don’t deduct those obligations. All distributions from your IRA are taxed at your marginal tax rate no matter what the asset sold was invested in. That’s why tax exempt income assets are generally not held in a retirement account.

Mike9241

Level 15

even distribution from an IRA or other retirement account of interest from a municipal bond is taxable.

Mike9241

JoGiaAuthor

Level 2

Thanks to everyone for your help. I learned something new.

lwylie

Level 2

What about for state taxes? For my state of Oregon, TurboTax asks if some of the money in my IRA was invested in US government bonds and notes. TT then says "You can subtract the part of your IRA ... distributions that corresponds to tax-exempt U.S. government interest received."