Reporting 12/31/2010 IRA value in TurboTax for taxable, non-taxable purposes
If you received a traditional IRA distribution in 2010 and also made traditional IRA contributions in 2010 that may not be fully deductible because of income limits, the value of your IRA on 12/31/2010 is needed to determine how much of your 2010 IRA distribution is tax-free and how much is taxable.
Currently, TurboTax does not easily provide a screen during the interview to enter this amount, which is reported on Form 8606, line 6.
To report this amount in TurboTax, follow these steps:
- Navigate to your form 1099-R located under Federal Taxes, Wages & Income.
- At the Your 1099-R Summary screen, click Done.
- On the Non-Deductible Contributions to Your IRA screen, select Yes then Continue.
- On the Let’s Find Your IRA Basis screen, enter an amount, if applicable.
- If you did not have a basis on 12/31/2009 enter $1. This is to trigger the screen needed to report the 12/31/2010 value. You will remove this amount in a minute.
- Next, you will get a screen titled Tell Us the Value of Your Traditional IRA. Here you can enter the 12/31/2010 amount on the first field. Once entered click Continue.
- Proceed through the rest of the screens until you are returned to the Your 2010 Income Summary screen to complete this section.
- If you had to enter $1 in step 4, remove this amount as it does affect your calculation. To do this, repeat steps 1-3.
- This time on the Let’s Find Your IRA Basis, remove the $1 then click Continue and proceed through the rest of the interview screens in this section.