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I received a 990-T from my IRA custodian. How do I claim these taxes on my return?

Forum|Forum|7 years ago
June 3, 2019
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Best answer by macuser_22

Bottom line is - you don't file it. The custodian of your IRA files it. You probably received a K-1 from from a security that you hold or the IRA custodian did.

If you hold a Limited Partnership or LLC in your IRA then any Unrelated Business Income in excess of $1,000 is taxable (even though it is in an IRA). It is not reported on your tax return but on a 990-T form. (The custodian of your IRA is required to file the form for you but you must submit the K-1 form(s) to them - ask the custodian about this).

Unrelated Business Income is reported as code "V" in box 20 on the K-1 form.

Also see pub 598.
http://www.irs.gov/publications/p598/ch01.html

DoninGA

Employee

A 990-T is a Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)). Not supported by TurboTax.

Why would your IRA custodian send you an Exempt Organization Business Income Tax Return? - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f990t.pdf">https://www.irs.gov/pub/irs-pdf/f990t.pdf</a>

Critter

Employee

Did the IRA custodian file the return for your IRA and just send you a copy ? Ask them if you don't understand what it is for.

macuser_22Answer

Employee

Bottom line is - you don't file it. The custodian of your IRA files it. You probably received a K-1 from from a security that you hold or the IRA custodian did.

If you hold a Limited Partnership or LLC in your IRA then any Unrelated Business Income in excess of $1,000 is taxable (even though it is in an IRA). It is not reported on your tax return but on a 990-T form. (The custodian of your IRA is required to file the form for you but you must submit the K-1 form(s) to them - ask the custodian about this).

Unrelated Business Income is reported as code "V" in box 20 on the K-1 form.

Also see pub 598.
http://www.irs.gov/publications/p598/ch01.html

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

J

JerryForell

He didn't ask how to file it he asked how to claim it on his return. Is it claimed on Line 73 "Credits from Form: ...", of the 1040?

macuser_22

Employee

@JerryForell - A 990-T does not go on a personal tax return on any line anywhere. It is filed as a separate return on it's own by the IRA custodian as described in the IRS instructions.

(BTW: the 1040 line 73 is for federal tax on fuels and has noting to do with IRA's or the 990-T form).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**