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RMD and 1040 don't match? My client has required minimum distribution from IRA, but the final form lists less then the taxable amount on the 1099-R, how do I correct?

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Level 1

1099-R show dollar amount taxable, but the 1040 form shows only a portion of that amount as taxable? what is the problem and can I override to equal taxable amount?

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Level 12

Does your client have Basis in Traditional IRA(s)?

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"Level Up" is a gaming function, not a real life function.

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Level 12

Does your client have Basis in Traditional IRA(s)?

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"Level Up" is a gaming function, not a real life function.

View solution in original post

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Highlighted
Level 1
Yes client has Basis in Traditional IRS
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Level 12
Then the taxable amount has to be determined from all of the traditional IRA accounts, using the total Basis against the total FMV at year end, for the % of distribution(s) that is and is not taxable. You can do that math, and you can look at form 8606 to see how it uses the 1099-R data for that calculation.
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"Level Up" is a gaming function, not a real life function.
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Level 1
Thanks, I will see if I can still do the math, been depending on software for a long time.
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Level 12
You make the entries and the form does the math.
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"Level Up" is a gaming function, not a real life function.
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