Spouses 1099-R for nondeductible IRA shows $13500 for the year due to 2018's $6500 being done before 4.15.19

[ronrph2000]

But when I go through TT it is showing that the $6500 is being taxed on line 18 of 8606 how do I fix that?

[macuser_22]

Please explain more?

If you took a 2019 distribution and also had a 2019 non-deductible contribution *for* 2018 then that cannot be applied retroactively to 2018. It is impossible to distribute money before it is even in the account.    TurboTax specifically asks if all of part of the 2019 contribution was for 2018 contributed before April 15 (Now July 15), just for that reason.

If I am misunderstanding, then please give the details.

[ronrph2000]

The 1099-R shows her total for non deductible IRA in 2019 as $13,500.  $6500 was for the 2018 tax year backdoor Roth rollover that was done before 4.15.19 and there is the $7k for the 2019 back door Roth that was converted in 2019 so the 1099 R that I received for 2019 tax year has a total of $13,500 for 2019.   When I put everything in TT it shows on form 8606-S a taxable amount of $6500 due to the difference of $7k conversion but 6500 still showing to equal the [social security number removed] R.  I am thinking I need to delete the IRA portion and start over, but even if I do that, how do I force the $6500 difference between the 2019 IRA and last years?

[macuser_22 · Accepted solution]

Oh -OK.  Then did you claim the 2018 $6,500 non deductible contribution on 2018 yiur 2018 tax return on a 8606 for so that is is on line 1 and 14 of the 2018 8606 form to apply to the 2019 distribution?

You enter the 2019 contribution in the IRA contribution sections which should  put that on the 2019 8606 line 1 and then enter the prior year 2018 8606 line 14 value in the interview  (as below) that should go on line 2 so the total of the 2018 and 2019 c contributors are on line 3.

If you did not claim it in 2018 and have a 2018 8606 then you need to amend 2018 (or file a stand-alone 2018 8606 form).

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019.

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

[ronrph2000]

Thank you for your help. 

I did put the 6500 on line 1 and 14 of 2018 8606 but didn't on line 4 indicating it was made between 1.1.19 through 4.15.19.  Not sure if that matters since I still had the 0 result in line 5?

I did go back through and make sure lines 1, 2, 3, 4 and 5 were correct on my 2019 and it worked, I think the issue was a figure in line 4, when it should have been 0.

Thanks for your help!!

[macuser_22]

As long as you did not have a distribution in 2018 then that is a quirk in TurboTax.  Line 4 will be blank, but if there is a distribution that files out lines 6-15 then line 4 WILL populate.    It is a small bug that makes no difference.

It appears that you found the issue with the 2019 contribution that should not have been on line 4 unless you made it in 2020.