AccountingBLOCK - Tax and Accounting Forums

bizark · 03-12-2009, 07:32 PM

I know someone who is using Turbo Tax Deluxe to file a tax return. He has withdrawn $50K from his traditional IRA at age 61. A part is non-deductible when he contributed (say 10K for his 100K account). How to enter 5K (= 10K * 50/100) as the return of principle that should not be taxed.

Is 8606 the right form?

Thanks!

ZahiD · 03-12-2009, 07:34 PM

I have never use Turbo Tax and never ever use one as it is the worst software that Intuit makes...

That said, 8606 is the right form to use

wrei@comcast.net · 07-01-2009, 06:54 AM

Quote:

Originally Posted by bizark

I know someone who is using Turbo Tax Deluxe to file a tax return. He has withdrawn $50K from his traditional IRA at age 61. A part is non-deductible when he contributed (say 10K for his 100K account). How to enter 5K (= 10K * 50/100) as the return of principle that should not be taxed.

Is 8606 the right form?

Thanks!

The bank that managed the IRA account will provide him (and the IRS) with the information needed to separate the principle from the accumulated capital gains and interest earnings.
Werner Reisacher

OC CPA · 12-17-2009, 04:18 AM

I agree with Zahid. Turbo Tax is error prone. Unless you tax return is very simple, entrust such matters to a professional.

03-12-2009, 07:32 PM	#1 (permalink)
bizark Status: Getting feet wet Join Date: Mar 2008 Location: USA Posts: 42 Rep Power: 24	IRA Distribution I know someone who is using Turbo Tax Deluxe to file a tax return. He has withdrawn $50K from his traditional IRA at age 61. A part is non-deductible when he contributed (say 10K for his 100K account). How to enter 5K (= 10K * 50/100) as the return of principle that should not be taxed. Is 8606 the right form? Thanks!

03-12-2009, 07:34 PM	#2 (permalink)
ZahiD Status: Administrator Join Date: Mar 2008 Location: Santa Clara, CA Posts: 491 Blog Entries: 7 Rep Power: 10	I have never use Turbo Tax and never ever use one as it is the worst software that Intuit makes... That said, 8606 is the right form to use __________________ AccountingBLOCK is on Facebook and Twitter Zahid Lilani Manager,

12-17-2009, 04:18 AM	#4 (permalink)
OC CPA Status: n00b Join Date: Dec 2009 Location: Los Angeles Posts: 6 Rep Power: 0	I agree with Zahid. Turbo Tax is error prone. Unless you tax return is very simple, entrust such matters to a professional. __________________ Anaheim CPAs \| Orange County CPAs \| Long Beach CPAs

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Sponsored links