line 4b on 1040 needs to be changed

Forum|Forum|2 years ago
January 30, 2024
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Have a total distribution of $11684 in box 1 of 1099-R but taxable amount in box 2 is $5464. Code is "2" in box 7, as the $11684 is a combination of conversion from Traditional to Roth, the taxable amount of $5464 is from contributions from 2022 and the remainder of the distribution converted in from Non-Deductible IRA contributions in 2023 (form 8606 completed). As I understand, I owe taxes in 2023 on the money contributed in 2022 that are converted in 2023 but I can't get that to reflect in line 4b on the 1040, even though the total distribution amount of $11684 is shown in line 4a. Any tax-angel out there have any thoughts? Thank you!

Best answer by dmertz

The Form 1099-R must be entered as received. I'm guessing that the Form 1099-R provided by the payer has $11,684, not $5,464, in box 2a, so you should have entered $11,684 in box 2a of TurboTax's 1099-R form.

The taxable amount of a traditional IRA contribution is determined on Form 8606, not from the amount in box 2a. Your nondeductible traditional IRA contribution for 2022 was required to have been reported on your 2022 Form 8606. The amount on line 14 of your 2022 Form 8606 carries forward to line 2 of your 2023 Form 8606 to reduce the taxable amount of your Roth conversion.