joanmcq Posted March 23, 2022 Report Share Posted March 23, 2022 Taxpayer has made $18000 in nondeductible IRA contributions. He’s 72 but still working and $6000 was made for 2021 (but I’m not sure if it was made in 2022 or not. Sending an email). Anyways, if box 4 is zero, it uses up all of the basis in the IRA this year, since the RMD was over $18000. If I put $6000 in box 4, none of the RMD is non taxable. Shouldn’t the non taxable portion be a fraction of the amount? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 24, 2022 Report Share Posted March 24, 2022 1 hour ago, joanmcq said: Shouldn’t the non taxable portion be a fraction of the amount? Yes. Have you completed the rest of the form with the FMVs, and are the distributions flowing to the 8606 also? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 25, 2022 Author Report Share Posted March 25, 2022 I have. And I get the result above. the question may be moot; it turns out my client did not make contributions the last 3 years. Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted March 25, 2022 Report Share Posted March 25, 2022 I'm not sure what contributions during the last 3 years has to do with it. (They could affect taxability of QCDs.) When you print Form 8606, do you see the basis ($18,000 assuming no previous withdrawals) on line 2, the FMV as of 12/31 on line 6? Then there should be a percentage on line 10, and the nontaxable portion on line 13. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 25, 2022 Report Share Posted March 25, 2022 Agree with Tex above. If the taxpayer has basis and has received a distribution, then a percentage of that is a return of basis. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 25, 2022 Author Report Share Posted March 25, 2022 Client was mistaken, the contributions he thought he made for the last 3 years (all of the nontaxable contributions) and were marked in his organizer, he did not actually make. They were contributions to his taxable account. So do I just delete the 8606? Mark the basis as zero and file it? Quote Link to comment Share on other sites More sharing options...
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