IRA Distributions

[JoeBan]

The correct Taxable amount from my Trad IRA is not being transferred to 1040, some other higher amount is being transferred.  I'm using TT2019

[xmasbaby0]

Do you mean you imported it and it is not correct--not matching the printed copy of the 1099R?  Do you already have a 2019 1099R?  Be careful when you import data--check it for accuracy and make corrections if necessary.  Mistakes can occur from the institution you import it from.

[VolvoGirl]

On what line?  If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right.

[JoeBan]

I have my 1099R & inputted the info manually. When I viewed the 1040 form in TT the taxable income does not match with the 1099R

[JoeBan]

I have my 1099R & inputted the info manually. When I viewed the 1040 form in TT the taxable income does not match with the 1099R.

[dmertz]

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

Did you roll any of this distribution over to another retirement account?

Was any of this distribution a Qualified Charitable Distribution or an HSA Funding Distribution?

The taxable amount of a regular traditional IRA distribution that you did not roll over or treat as a QCD or HFD is the entire amount unless you have basis in nondeductible traditional IRA contributions.  If you have basis in nondeductible traditional IRA contributions, the taxable amount of the distribution is determined on Form 8606 Part I and the resulting taxable amount would be less than the full amount of the distribution.

If you are seeing more than the box 1 amount for the Form 1099-R being included on Form 1040 line 4b, the additional amount must be coming from a different Form 1099-R that you entered.

[JoeBan]

What is the code in box 7 of the Form 1099-R provided by the payer? YES
Is the IRA/SEP/SIMPLE box marked? YES
Did you roll any of this distribution over to another retirement account? NO
Was any of this distribution a Qualified Charitable Distribution or an HSA Funding Distribution?  a QCD

I also have a basis, so on 8606-T the taxable amt. shown is the full distribution rather than the taxable amt. which is in error and consequently in error on from 1040

[dmertz]

Assuming that this is not an inherited IRA, the code in box 7 is apparently code 7.  (This was not a yes/no question.)

The amount of a QCDs is not reported on Form 8606.  It is simply excluded from the taxable amount on line 4b of Form 1040 with the notation "QCD" next to the line.

Whatever amount distributed from your traditional IRAs that was not QCD does go on Form 8606.  To be sure that TurboTax knows the correct amount of your basis (Form 8606 line 2) and your 2019 year-end balance in traditional IRAs (form 8606 line 6), be sure to click the Continue button on the Your 1099-R Entries page, answer Yes when asked if you made nondeductible contributions to your traditional IRA for any year prior to 2019, then confirm these amounts.  (Your basis in nondeductible contributions is the amount from, generally, line 14 of your most recent previously filed From 8606.)  With the Form 1099-R and this additional information properly entered, TurboTax will correctly calculate the taxable amount of the distribution, include it on Form 1040 line 4b and will calculate the amount of basis that remains in your traditional IRAs (2019 Form 8606 line 14).

[JoeBan]

What you wrote is correct. My 1099-R in TT 2019 correctly shows the correct taxable and non-taxable amounts. Line 7 of 8606-T shows the taxable amount but it should not since I have a QCD, it should be a reduced by the QCD amount. I contend that there is an error in TT2019.
BTW I checked my 2018 TT file in which I also had IRA distribution and QCD and TT correctly had the reduced amount in line 7.

[dmertz]

2019 TurboTax handles QCDs correctly.

When a person who was age 70½ or over in 2019 enters a Form 1099-R reporting a regular distribution from a traditional IRA, TurboTax asks how much of the distribution was transferred to charity.  TurboTax properly omits from Form 8606 and from Form 1040 line 4b the amount the individual indicates was transferred to charity.  (If the entire amount of your traditional IRA distributions was QCD and you made no Roth conversions or nonqualified Roth IRA distributions, TurboTax will entirely omit this Form 8606 from your tax return.)

If TurboTax fails to ask the question about how must was transferred to charity, make sure that your birthdate entered into TurboTax is correct so that TurboTax knows that you were age 70½ or over in 2019 and that you have marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form.

[Anonymous]

the 1099-R doesn't report the QCD.  it must be entered manually.    

the full amount on the 1099-R is reported as taxable.  

The QCD is limited to the amount that would be taxable

if the QCD is made from an IRA 's that includes a non-deductible contributions the amount is first deemed to come out of the taxable portion of the IRA.

the non-deductible portion of the IRA on the 8606  will be used to compute the non taxable portion.

example.     $5,000 RMD.   $2,000 QCD   $3,000 will be carried to the 8606 to compute the non-taxable portion