Greetings. I had a group of 6 simple IRA withdrawals in 2024. Two were rollovers. 4 were simple distributions. So the total of my 'taxable' withdrawals on Line 4b of the 1040 should be the total of the 4 simple withdrawals. The TT calculation is coming up $4,500 short of my calculation. Thought transposition error but I verified all data entry and all 1099R's have been correctly entered. Has anyone else had issues with this? Maybe a glitch in the programming? TIA
Update after looking at the worksheet for 1099R summary on line 40 it is showing non-taxable IRA distributions for sales tax deduction in the amount of $4,500. I'm not sure where that's coming from because everything should be taxable?
To clarify, did you make nondeductible contributions to your Traditional IRA in the past? If yes then part of your distribution will be nontaxable. The taxable part is calculated on Form 8606.
thank you for responding. I believe i did make taxable contributions at some point over the 40ish years that have passed since i started my ira. I don't have records going that far back. i don't even think the form 8606 existed. i have never filed an 8606 as i was never prompted as long as i've been using turbo tax. so when they are calculating my withdrawal 'non taxable' reduction, I'm not sure what they're using. apparently basic charts. how accurate is it? i suppose the risk of using it is that i may be double paying taxes on any non deductible contributions. I'm thinking do i need to reconstruct the years of contributions which would require requesting old t/r's and maybe investment accounts? Or should i simply accept what 8606 calculates? tia
Do any of your 1099s have information in Box 5? It could come from there as well. Also, if you imported the forms you may want to delete them and re-enter manually.
without Form 8606 records, TurboTax is not going to make up a Form 8606 for you out of nowhere.
IRS says,
without satisfactory deposit records, and Forms 1040 showing no deduction taken,
your stated basis is denied, and your distribution is 100% taxable.
there are no entries in any box 5's of any 1099s. I entered all of my data manually. yet it's giving me an 8606 which per the 1099 summary worksheet is from line 40 of that worksheet generating a non taxable amount on line 13 of 8606
To clarify, do you have an entry on line 1 or line 2 on Form 8606?
If it is on line 1 then you must have entered a nondeductible Traditional IRA contribution for 2024 under Deductions & Credits. If it is on line 2 then you indicated you had a prior year basis when TurboTax asked "Any nondeductible Contributions to your IRA?" or it got carried over from a previous year.