Unrecovered contributions

Forum|Forum|2 years ago
February 14, 2024
2 replies
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Where did this come from??? I've been filikng with Turbo Tax and taking 1099R distributions for years and now I can't complete my NJ return because I have to put in a number here and it won't take a zero, I have no idea what this is and do not ever remember it coming up in previous years. Where do I go from here? HELP

TurboTax Home & Biz Windows

Best answer by fanfare

Based on Rollover from a 401k, your unrecovered contribution amount is zero.

If Turbotax won't take a zero, I posted a workaround above.

Otherwise, contact TurboTax support.

OR,

use override and file your return by mail.

Override is not available in the Online versions of TurboTax.

the workaround is pretty simple and should work for you.

@Geom1

fanfare

Employee

You have a basis in your IRA as far as NJ is concerned because you did not/could not deduct IRA contributions from your NJ taxable income in all those past years.

Those are unrecovered.

See Worksheet C in the NJ Resident Return Instructions for how to avoid double taxation on that money (i.e. recover it) when you withdraw from your IRA. There is a first year calculation, and then a calculation for all subsequent years. OR use TurboTax to do it, it is the same thing but in a different presentation.

You will need good records showing what you put in over the years, or some way to reconstruct that information.

However, if the Retirement Income Exclusion eliminates your tax, the unrecovered calculation becomes moot.
You qualify for the pension exclusion if:

You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and

Your total income for the entire year was $150,000 or less.