I have a basis in traditional IRAs. This is first year I had to take a RMD distrubtion. I can't get 8606 to calc the % that should be deducted from the distrubtion received. For example: if I took $50k distrubtion, basis in my IRA is $35k, value of IRA at 12/31 is $1,000,000. 8606 should calculate 35000 / 1,000,000 = 3.5%. This means that 3.5% of the $50k is NOT taxed leaving a taxable amount to line 5b on 1040 to be 48250 (50000 * 3.5% = 1750. 50000 - 1750 = taxable amount of 48250). Basis at end of year is now 33250 (35000-1750 = 33250) . What needs to be checked/unchecked etc. to make TTX work. This is extemely frustrating for what is a SIMPLE calculation. PS: I know when I did my tax budget with last year TTX, this worked properly. PPS I also notice that form 1099-R, RMD section, question D (type of account) will NOT accept a check in IRA box. It stays RED!
To clarify, did you enter your Form 1099-R and answer the follow-up questions about your basis and value?
Thanks. The issue was on the 1099-r page. Section 7 had the correct code of 7 a regular distribution but the box directly to the right of code 7 needed to be checked. This is why the RMD section question D was red and it didn't calculate. Took 3 help agents to finally figure this out. I said to each of them. Something is either checked or not checked causing this not to calc.