1099-R Taxable Amount Not Determined

[billmoore48]

1099-R Box 2=Taxable Amount Not Determined. Box 7 Dist code=T.  2021 return.  This is for a Roth IRA, first withdrawal of $33K from the fund.  During TT input, TT pops my original investment of $25K, which leads me to think that $8K would be taxed. Instead, the TT Fed Tax summary showed no increase.  Total 2021 income is $100K+, so expected to see some Fed Tax added. Ideas??? TIA

[DanaB27 · Accepted solution]

Please be aware, if you took a Qualified Distribution then you won't have any taxable income. 

A Qualified Distribution is any payment or distribution from your Roth IRA that meets the following requirements.

1. It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit.

2. The payment or distribution is:

   1. Made on or after the date you reach age 59½,

   2. Made because you are disabled,

   3. Made to a beneficiary or to your estate after your death, or

   4. One that meets the requirements listed under First Home (up to a $10,000 lifetime limit).

You can verify how much is taxable by looking on line 4b.

To preview Form 1040 in TurboTax Online:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[Mike9241]

code T . there are two possibilities. if you had the ROTH since 2016, the distributions are tax-free. do not complete form 8606 enter $0 for taxable amount on 1099-r.

if not, then you need to complete  form 8606 to determine taxability

[billmoore48]

Thanks for the quick reply! Great info - no taxes this time!

[billmoore48]

Always appreciate great explanations like this one! Thanks and have a great week!