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On my income tax form I have my ira as retirement its a inherited to to correct it
Income from an inherited IRA account is still retirement income and is usually taxable as well.
While most things you inherit aren't taxable, a tax-deferred account is an exception because the original owner of the account didn't pay tax on it.
A tax-deferred account includes traditional IRAs, employer retirement accounts like 401(k) plans, and some annuities.
Here's the process for entering an inherited IRA:
- Open your return.
- Select Federal, then Wages & Income.
- Scroll down to IRA, 401(k), Pension Plan Withdrawals (1099-R), under Retirement Plans and Social Security, select Start or Revisit to the right.
- Answer Yes to Did you get a 1099-R in 2023?
- Select Inherited a retirement account, and select Continue.
- Follow the screen instructions to enter the 1099-R form.
- On the screen titled, Do any of these situations apply to you? select I inherited this IRA from the list.
- Select Continue.
- Carefully answer the questions about the original owner of the account.
- On the screen Did you have nondeductible contributions for this IRA?, don't select Yes unless you have documentation showing that the original owner made nondeductible contributions.
- Answer the rest of the questions in the section.
The amount form box 2a on your 1099-R form will show on line 4b on your 1040. It's taxable income, but you won't pay an early withdrawal penalty on it even if you are under 59-1/2 years old.
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