1099-r

Forum|Forum|1 year ago
February 13, 2025
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In 2011 I opened an annuity with my bank for $5000. It was made with after tax dollars as I did not qualify for the IRA deduction. This year I closed the account and the 1099-r box 1 has the amount as $5725 and box 2 as $5725 with box 2b marked as taxable amount not determined, and total distribution marked. Tax is $572.51 and box 7 is marked 7 the ira/sep box is checked.

How do I enter the information so that I do not pay tax on the initial deposit.

ThomasM125

You enter the Form 1099-R in the Wages and Income section of TurboTax, then Retirement Plans and Social Security, then IRA, 401-K, Pension Plan Withdrawals (1099-R). In that section you will indicate that your distribution was from sources other than an IRA, but it will be referred to as an IRA nonetheless.

After you input the Form 1099-R information, you will eventually come to a screen that says Any Nondeductible Contributions to your IRA? to which you will answer "yes".

Later, you will be asked to enter the basis (non-deductible contributions) to your IRA at end of 2023 and the value of your traditional IRA's at end of 2024. Turbo tax will use that information to determine the taxable amount of your distribution and enter in on line 4b of your Form 1040.

To view your form 1040 and schedule 1 to 3: