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Question

Tall Texan

Asked

Part of my RMD from an IRA is non taxable. How do I indicate this in Turbo Tax?

(Asked 03/12/09, Views 69)

Question has been solved by SteamTrain

Answers (2) Comments (2)

SteamTrain

SuperUser

You should have received a 1099-R form whoever distributed the $$.
That 1099-R should have a box 2a Taxable Amount smaller than box 1 Gross Distribution.
When you put this 1099-R into TT, that nontaxable portion is taken care of there.

(Posted 03/13/09)

Solved

Rating (+ 10):

TurboTaxDon

Pro

SteamTrain's answer does not apply to IRAs. For a traditional IRA, the taxable part of the distribution is calculated based on the basis and year-end value of the traditional IRAs. All traditional IRA accounts are treated as one IRA account combined. After you enter your Form 1099-R, enter the basis and year-end value in your traditional IRAs and the taxable amount will be calculated on Form 8606.

(Posted 03/13/09)

Helpful

Rating (+ 6):

SteamTrain
Commented

ARGGH...Always a complication. Leave it to the IRS and the financial providers to make the calculations as complex as possible. Stick with TTDon's answer.