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Has anyone received a notice because line 4a (Gross distributions from IRA's, pensions, annuities) is less than line 4b (Taxable amount)?

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Level 2

It appears to me that on page 29 of the 1040 instructions, the last paragraph under IRA's, that if multiple distributions, the gross on 4a should include ALL distributions even if taxable amount is equal to the gross amount. See instruction paragraph below:

More than one distribution. If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 4b. Enter the total amount of those distributions on line 4a. 

Has anyone received a notice because 4a did not include the gross IRA distribution for amounts that were fully taxable and therefore line 4a is less than 4b?

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Level 15
Level 15

Yes, that is a new feature for 2018, to make it more confusing for everyone!

If an IRA distribution has the same amount for gross and taxable, it doesn't appear in the gross box, only in the taxable box....so 4a can be smaller than 4b.   Its weird, but correct.    If you look back at 2017 it does the same thing, BUT IRAs and pensions were on separate lines, not combined, so it didn't look so weird.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15
Level 15

Yes, that is a new feature for 2018, to make it more confusing for everyone!

If an IRA distribution has the same amount for gross and taxable, it doesn't appear in the gross box, only in the taxable box....so 4a can be smaller than 4b.   Its weird, but correct.    If you look back at 2017 it does the same thing, BUT IRAs and pensions were on separate lines, not combined, so it didn't look so weird.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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