Question

Form 1040 is not pulling the taxable distribution from one of my IRA's. It shows up in the gross amount on the 1040 but not on the taxable line.

Forum|Forum|1 year ago
March 24, 2025
1 reply
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I prepared Form 8606 off-line for my inherited IRA's with basis. I understand that TurboTax will not generate that form for an inherited IRA. I have a traditional IRA with no basis and that distribution is included in the gross IRA distribution line on Form 1040 but not on the taxable line.

TurboTax Online

fanfare

If you are overriding 4b to include the inherited taxable amount you also have to add the taxable amount of distribution (all) from your IRA.

Otherwise, you did not enter the form correctly.

For an inherited IRA, the names on 8606 should be "<owner> and <your name> BENE" or Beneficiary if it fits, and your SSN.

@phee19

fanfare

You must use a separate Form 8606 calculation to determine the taxable portion using the basis in the inherited IRA.
The problem is the software won't enter the correct Name:
And it won't handle the case where you too have a basis in your IRA and took a distribution.

Since you have no basis, only one Form 8606 is needed
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you can calculate the taxed portion on Form 8606 yourself to discover the proper amount for 1099-R box 2a.
Or, you can start a separate tax return in desktop TurboTax and use that one to calculate the Inherited IRA taxed portion.
Then you have to fudge up a 1099-R that sums those amounts from two IRAs on Form 1040 avoiding Form 8606.
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After verifying you have the correct taxable amount on Line 4b,
E-file your return, don't file on paper.

After it is ACCEPTED ,
get Form 1040-X from IRS website and mail it in with your 8606, which you can also get in fillable PDF.
Note: since you are not changing any dollar amounts on your amending 1040-X, you can leave all the lines 1-23 EMPTY.
The names on 8606 should be "<owner> and <your name> BENE" or Beneficiary if it fits, and your SSN.

Part II explanation: "didn't include Form 8606 with e-File.Here it is".

In a few months to a year, you will get an acknowledgement from the IRS.