Tax on IRA distributions

Forum|Forum|1 year ago
April 5, 2025
1 reply
0 views

In 2024, I took my first RMD from my IRA's. Part of this was a QCD. I also converted part of a traditional IRA to a Roth. The taxable amount of these distributions was calculated by TurboTax to be the total amount distributed minus the QCD. Shouldn't the taxable amount also be reduced on a pro-rated way by the basis I had in my IRA due to past non-deductible contributions? This basis was shown on Form 8606 for my 2023 return, so Turbotax knew about it.

TurboTax Home & Biz Windows

DanaB27

Please make sure you enter your prior year basis in the follow-up questions after you enter all Form 1099-R:

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Update" next to "IRA, 401(k), Pension Plan (1099-R)"
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs