Form 1099-R - Entering Basis of Nonqualified Distributions

Below, please find the procedure for entering the basis of your nonqualified Roth IRA distributions. To get Line 19 of Form 8606 to calculate properly, follow the instructions below:

To enter Form 1099-R (Distributions from Retirement Plans) into the program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand the section and then click IRA, 401(k), and Pension Plan Distributions (Form 1099-R)
  3. Click +Add Form 1099-R to create a new copy of the form or click Review to review a form already created 
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

After you enter the distribution amount, make sure the Taxable Amount Not Determined box is checked (checkbox is located on the screen titled Retirement Plan Income - Distribution Amount). Also, the correct codes need to be entered for the screen titled Roth IRA Distributions - Basis to appear. For example, if the Box 7, Code J-Roth Early Distribution is entered, the screen will appear.

  1. Once you are brought back to the Form 1099-R Summary screen, continue to the screen titled Roth IRA Distributions - Basis.
  2. In the box for Basis in Roth IRA Contributions, enter the amount of your Roth IRA contributions made in previous years.

Line 4b should now have the correct amount as taxable.