IRA Worksheet

 

?   Calculation type:
TaxSlayer rounds the ratio of basis to IRA totals to 3 decimal places which can result in minor taxable amount and new basis amount errors.

The "No rounding" option does not round the ratio and is more accurate. But using this option will not match the Form 8606 produced by TaxSlayer.

Information for tax year

This worksheet is for

Check the box if the following is true in 2020:
An IRA contribution was made but only part (or none) was deductible due to AGI limitation (See Schedule 1) AND a distribution was also made.
  • Taxable amounts of IRAs affect AGI which affects the IRA contribution deduction which, will change the taxable amount. This worksheet will do the iterations required to optimize this issue.
  • First, make sure all IRAs entered show their gross distribution as fully taxable.
  • Then, enter the following information:
    Filing status: , AGI:
    this TP >= 50, this TP has ret plan, other TP >= 50, other TP has ret plan, living together
A qualified disaster distribution was made, Amount:
Any amount of the distribution was repaid, Amount:

Form 8606 Worksheet - Nondeductible IRAs:

  • Do not include inherited IRAs; they require their own 8606 if they have a basis.
  • The year-end value of all IRAs must be entered.
  • Uncheck the TRADITIONAL box if the IRA is a SEP or SIMPLE IRA
  • List IRAs from which QCDs have been taken first followed by traditional IRAs.
  • To simplify TaxSlayer entries, nontaxable amounts are taken from IRAs in the order listed.
BASIS:
Total basis in traditional IRAs from previous years (from most recent Form 8606)
CONTRIBUTIONS TO IRA for 2017
Total contribution made
Deductible IRA contribution amount from Schedule 1
Nondeductible contributions made in 2017
Nondeductible contributions made in 2017 prior to filing deadline
TRADITIONAL/SIMPLE/SEP IRAS: (Enter "0" where appropriate)
CHECK IF
TRADITIONAL		 1099‑R GROSS
DISTRIBUTION		 ROTH CONV
AMOUNT		 QCD
AMOUNT		 VALUE ON
12/31/		 TAXABLE
AMOUNT
IRA 1
IRA 2
IRA 3
IRA 4
IRA 5
Any outstanding rollover amount (process not complete)
 When all data has been entered, click to adjust the contribution limited by AGI. 
 
 Pub 590B QCD Adjustment Worksheet
  • QCDs cannot be more than $100,000 per TP/SP.
  • QCDs are taken first from the part of IRA that would be taxable. The remainder is taken from the basis (nondeductible contributions) and while not an exclusion for the QCD distribution, can be used on Schedule A as a charitable contribution.
  • QCDs can be taken from SIMPLE/SEP IRAs if they are no longer being contributed to.
  • The exclusion amount of QCDs made after turning 70½ must be reduced by any IRA contributions made for which a deduction was taken.
    Check if this taxpayer ever made deductible contributions to an IRA when age over 70½ and for tax years after 2019.
DEDUCTIBLE CONTRIBUTIONS TO IRA:
Total income adjustment credit amount due to IRA contributions since turning 70½, including 2020
QCD AMOUNTS:
Total QCD distribution amounts deducted in prior years since turning 70½, NOT including 2017
QCD distribution amount for 2017
QCD ADJUSTMENT WORKSHEET RESULTS:
Maximum exclusion available for the QCD distribution
Exclusion limitation due to taxable amount less than QCD
Reduced basis & contributions due to use of nontaxable amount for QCD
 
 Pub 590B Worksheet 1-1
1. Initial basis
2. Total contributions
3. (Basis + contributions)
4. Year end total value of traditional IRAs
5. Total distributions from traditional IRAs including QCDs
6. (Beginning of year value of traditional IRAs)
7. Nontaxable fraction
8. Nontaxable portion
Do not use this worksheet - Line 8 is greater than or equal to F8606 line 5
9. Taxable portion before ROTH conversion(s)
10. ROTH conversion taxable portion
11. Taxable portion after ROTH conversion(s)
 
 Form 8606 results:
5. Traditional IRA basis + contributions in current tax year only
9. IRA total amount subject to taxable reduction by basis
10. Nontaxable fraction
13. Nontaxable portion of distributions (From Pub 590B Worksheet 1-1)
14. Total basis in traditional IRAs for and prior years
15. PART I taxable amount (Reduced by for disaster distribution)
18. PART II (ROTH) taxable amount

TaxSlayer Input

Form 8606 input for TaxSlayer:

NOTE: You must create a Form 8606 in TaxSlayer so that it's included in the tax return!
(Federal Section > Deductions > Adjustments > Nondeductible IRAs)
Total basis in traditional IRAs
Contributions made from January 1 through filing deadline in 2018
Total value of all traditional, SEP and SIMPLE IRAs as of December 31, 2017
Outstanding rollovers
Traditional IRA distributions (reported on form 1099-R) received during 2017
Net amount converted from traditional, SEP and SIMPLE IRAs to Roth IRAs in 2017

Form 1099-R taxable amounts for TaxSlayer:

Return to the IRA distribution 1099-R forms and change the TAXABLE AMOUNT to that shown in the table above.
(You can actually distribute the total taxable amount to one (or more) of the 1099-R forms in any way you wish.)
Taxable amount from Form 8606
QCD exclusion amount
Also, check the QCD box in Nontaxable Distributions
If an IRA contribution was made check Schedule 1 to see if it was limited by AGI. If so, re-run this worksheet with that option checked since it will affect the results. Then, click the Optimize button to get the optimal results.

Schedule A contribution input for TaxSlayer:

The Qualified Charitable Contribution(QCD) amount exceeds the taxable amount total of your IRAs. This excess can be deducted as a cash charitable contribution on Schedule A.
Remaining QCD amount - enter as a Schedule A cash contribution

Please send corrections and suggestions to tools@cotaxaide.org