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I have 2 1099 Rs and they total $17388. Both are box 7 code 4. One is not being taxed fully on line 4 of the 1040. Any thoughts?

simensonka
Level 2
 
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Just-Lisa-Now-
Level 15
Level 15
I thought I remember seeing earlier this season that the IRA basis on an 8606 was getting used against Code 4 in error....I havent had any with this situation so I dont have any first hand experience with it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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4 Replies 4
Just-Lisa-Now-
Level 15
Level 15
Does the client have some non deductible IRA basis on Form 8606 thats offsetting the taxable amount?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Camp1040
Level 8

Code 4 is due to death, there might be an amount in box 5, but generally the full amount of amount in box 1 should carry to the 1040 line 4.

Just-Lisa-Now-
Level 15
Level 15
I thought I remember seeing earlier this season that the IRA basis on an 8606 was getting used against Code 4 in error....I havent had any with this situation so I dont have any first hand experience with it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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simensonka
Level 2

This was the issue.  A basis in a roth was being subtracted.  

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