Why is TaxFreeUSA entering my regular IRA distribution on line 4a and not just 4b?

crazy_ate
crazy_ate Member Posts: 5 Newcomer
in Income

Per 2025 IRS 1040 instructions:

If the distribution from your IRA is fully taxable, enter the total distribution on line 4b; don’t make an entry online 4a.

On the 1099-R for this distribution, my entries are:

  • The Box 1, Box 2a (same $ amount on both lines)
  • Check 2b, taxable Amount Not Determined
  • Box 7 dist code = 7
  • IRA/SEP/SIMPLE box checked

However, FreeTaxUSA is putting this amount on lines 4a and 4b when IRS instructions state that it should only appear on 4b unless certain exceptions are met — I meet none of those exceptions.

How can I fix this and get the amount off of line 4a?

Comments

  • GeorgeM
    GeorgeM FreeTaxUSA Agent Posts: 46 image
    Hello crazy_ate:

    While you properly cite the IRS instructions for Form 1040, lines 4a and 4b, our software includes on line 4a, the total distribution amount to more fully explain the context of the 1099-R. Assuming none of the exceptions apply in your situation, at least for this tax year, line 4a will continue to reflect your total distribution. Going forward, we can discuss your concerns with our development team and perhaps implement changes for tax year 2026.
  • crazy_ate
    crazy_ate Member Posts: 5 Newcomer

    Understood, thanks for the prompt feedback.😉

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