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Member I

Traditional IRA tax basis (filling out)

(Apologies if this is double-posted; I made an edit and thought I hit "post", but I seem to have deleted the post.)

 

I believe I've made it through most of the information (yay!), with one possible exception.

 

I don't know if I should leave Traditional IRA contributions blank. Neither myself nor my spouse made any traditional IRA contributions in 2017. (I reported my Roth IRA contribution for 2017.)

 

I've had a CPA firm file our taxes for decades, until this year. I provide them all IRA information, and am confident they have reported all activities appropriately.

 

2016 (NOT 2017) filed taxer return: 8606 Nondeductible IRAs

 

Taxpayer:

 

Line 14: ... your total basis in traditional IRA for 2016 and earlier years: $60.

 

Line 15: Taxable amount: <blank>

 

--

 

Spouse:

 

2016 (NOT 2017)

 

Took a distribution in 2016.

 

Line 2: ... total basis in traditional IRAs (see instructions): $750

 

7: Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2016. include rollovers, qualified charitable distributions, a one-time distribution to fund an HSA, conversions to a Roth IRA, certain returned contributions, or recharacterizations of traditional IRA contributions (see instructions): $470 [that was the spouse's required minimum distribution and was recorded on a 1099-R].

 

Line 14: Subtract line 12 from line 7. This is your total basis in traditional IRAs for 2016 and earlier years: $721.

 

Line 15: Taxable amount. Subtract line 12 from line 7. If more than zero, also include this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b: $441.

 

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The TurboTax Traditional IRA Basis Smart Worksheet says:

 

 

BASIS: If you have ever made a nondeductible contribution to a traditional IRA in a previous year, (not including any rollovers) you may have a basis in your traditional IRAs.

 

If all regular, annual contributions, not including rollover contributions, you made to your traditional IRAs in all years before 2017 were deducted on your tax return for the year of the contribution, YOUR BASIS IS ZERO.

 

If some or all regular, annual contributions, not including rollover contributions, you made to your traditional IRAs in any year before 2017 could not be deducted on your tax return for the year of the contribution, and you have never take a distribution from your traditional IRAs before 2017, YOUR BASIS IS THE AMOUNT OF THE CONTRIBUTIONS THAT COULD NOT BE DEDUCTED.

 

If some or all regular, annual contributions, not including rollover contributions, you made to your traditional IRAs in any  year before 2017 could not be deducted on your tax return for the year of the contribution, and you have take a distribution from your traditional IRAs before 2016, YOUR BASIS SHOULD BE SHOW ON THE LAST FORM 8606 YOU FILED.

 

CAUTION: Basis is not the amount of your distribution, and it is not the value or your IRAs, either before or after the distribution.

 

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The historical information I have:

 

Taxpayer IRA:

 

Contributions: Has made contributions to Roth IRA over the years at or below the limit.

 

Has a rollover IRA, but cannot recall when that was last contributed to (probably well over a decade).

 

Distributions:

 

Roth IRA: 2014: $6,100; 2015 $5,000.

 

Spouse IRA:

 

Contributions:

 

Rollover: 2007 and 2008 (amounts under $600)

 

Roth IRA: Various contributions, at or below the limit.

 

Distributions:

 

2005: Roth IRA: $3,300. Federal Income tax was withheld, and reported from a1099-R.

 

2016:  Roth IRA: $5,500 distribution. A 1099-R was received, and the amount was reported.

 

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