I have Roth Distribution with a taxable amount of zero that is still showing up as taxable even though I enter $0.00 in box 2a. Is there something else I should be doing?
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Did you use the correct distribution code? How old is the client? What was their basis in the IRA? In other words, look very closely to see what you missed.
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Thanks for your quick response.
Client is 54, contributions from where the distribution was taken are more than 5 years old. Box J is entered, $0.00 is entered in Box 2 for taxable amount. I even check with NATP (National Association of Tax Professionals) research dept. We are both at a loss as to why it is showing up as a taxable amount on Form 1040.
On the IRA Information worksheet Part V line 22 Opened a Roth before 2015 Checked "YES"?
Is there enough basis on line 23 to cover the distribution? For example if the distribution is for $7000 is there enough on line 23 to prevent any of the distribution from being taxable?
When I work an example this way it is taxable until I do those items.