Question

Form 1099-R Box 2a blank

Forum|Forum|3 years ago
February 13, 2023
1 reply
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I entered a death 1099-R as received, and answered the follow up questions during entry. TT is correctly counting the about in Box 1 as taxable. However during the Smart Check, I am getting the following response:

Form 1099-R (..Bank) Taxable amount must have a value, even if zero. Box 2a (enter a value). Box 2b is checked.

Why is Smart Check giving me an error?

TIA

JohnB5677

1099-R inheritance tax treatment depends on whether it was inherited from a spouse or not.

When you receive a distribution from an inherited IRA, you will receive a 1099-R, with a Distribution Code of '4' in Box 7. This gross distribution is usually fully taxable to the beneficiary/taxpayer unless the deceased owner had made non-deductible contributions to the IRA

You may have to pay income tax on the distribution, based on the type of plan and the manner in which contributions were made by the decedent. While the form 1099-R has a lot of information, you may need more data to determine taxable portion of the distribution. For example, if the 1099-R is for an IRA, you need to know the basis - the amount of after-tax contributions to the account. If no after-taxes contributions were made (or you don't know it and can't find the information) the entire amount is taxable.

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D

dandrhuffAuthor

I expect to pay income tax on the distribution. It is fully taxable. The problem is with the Smart Check. Why is it giving me an error? You didn't address that issue.

DaveF1006

It depends. In this instance, go back to revisit your 1099R entry, and put in the full taxable amount that is in Box 1 and report as the taxable amount in Box 2A. This should clear the error. Uncheck the box that says taxable amount not determined if that is the box that is checked on your copy of the 1099R.

@dandrhuff

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