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IRA inherited & TurboTax

hi - Just received a thick letter from the IRS - never a good sign. Opened it, hands shaking....

It appears I messed up on the 2008 handling of the IRA 1099-R amounts we received from my wife's deceased mother's IRA holdings....

I copied the info from the 1099-R as per TT, but may not have checked all the right boxes when using TurboTax 2008, and the total taxable amounts were not reported correctly on line 15b...

The entire taxable amount should have been entered on line 15b.

Going back and troubleshooting, I found my error. I should have checkmarked an obscure worksheet box called "inherited" which would cause the entire taxable amount to flow thru to line 15b

happy egg hunting -

Reply to
ps56k
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Another error I have seen quite a few times this season and past seasons is where a 1099R reports the gross distribution, checks the Taxable Amount cannot be determined box, and leaves the Taxable amount box blank.

Some software (e.g., TaxWise) will add the gross distribution amount to line 15b/16b, but other software (e.g., CS UltraTax) willl add to 15b/16b whatever you entered as Taxable Amount, and treat blanks as zero, unless you have set up an annuitization calculation.

And some consumer software does this as well, as we have been seeing taxpayers holding nastygrams who ask us to unravel this.

As I have often said, tax software can be a valuable and powerful tool, but you have to know how to use it. Similarly, a chainsaw or a blow torch are valuable tools.

Reply to
Arthur Kamlet

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