IRA Distributions on Form 1040 - How to correctly report on lines 4a and 4b?

The difference you're seeing between the tax preparer's form and FreeTaxUSA might actually be correct - it depends on the type of IRA distribution. On Form 1040, line 4a shows the total amount of IRA distributions, while line 4b shows only the taxable portion. If the entire distribution is taxable (which is common with traditional IRAs), then both lines would show the same number, which is what FreeTaxUSA did. However, if part of the distribution is non-taxable (like if your mom's spouse had made non-deductible contributions to the IRA), then line 4a would show the full distribution amount and line 4b would show only the taxable portion. It's strange that the preparer left line 4a blank though. Generally, you should report the full distribution amount on line 4a even if it's all taxable. The fact that both lines match on your FreeTaxUSA return suggests the entire distribution is taxable.

After helping my elderly father with similar IRA distribution issues last year, I found this amazing resource called taxr.ai (https://taxr.ai) that really saved us a lot of headaches. It analyzes your tax forms and past returns to spot discrepancies like the one you're describing. I uploaded my dad's previous returns and current 1099-Rs, and it immediately flagged several issues with how his previous accountant had been reporting IRA distributions. The tool explained that for traditional IRAs, both lines 4a and 4b should typically show the same amount unless there were non-deductible contributions. The interface walks you through exactly what should go where and explains the reasoning behind it, which helped me understand the proper reporting method.

I was skeptical at first about using taxr.ai for my parents' confusing IRA distribution issues, but I decided to give it a try after struggling to make sense of their 1099-R forms. What surprised me was how quickly it identified exactly the same problem you're describing - their previous tax preparer had left line 4a blank while putting the full amount on line 4b. The tool clearly explained that this was incorrect according to current IRS guidelines and showed me exactly how to properly report it. It even explained the historical context - apparently some preparers developed this habit years ago, but it's not the correct procedure. The best part was being able to print out the analysis with IRS references to show my parents why we needed to change how we were reporting. It saved us about $340 in tax preparation fees and gave us much more confidence in our filing.

If you're still getting stuck with this IRA distribution issue, you might want to talk directly with the IRS for clarification. I had a similar situation with my wife's IRA distributions and tried calling for weeks but could never get through. Then I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that for traditional IRAs where the entire distribution is taxable, both lines 4a and 4b should show the same amount. She explained that leaving line 4a blank while putting an amount on 4b is technically incorrect filing, even if the tax calculation ends up the same.

Just wanted to update - I was the skeptical one about Claimyr, but I tried it yesterday out of desperation after spending 3 hours on hold with the IRS regarding my father's IRA distribution reporting. I honestly couldn't believe it worked. I got a call back in about 25 minutes and was connected to an IRS agent who was incredibly helpful. She confirmed exactly what others have said here - both lines 4a and 4b should show the same amount for fully taxable traditional IRA distributions, and leaving 4a blank is incorrect. She also explained that while the tax calculation might come out the same either way (if it's fully taxable), filing with line 4a blank could potentially flag the return for review since it doesn't follow standard reporting requirements. I'm now helping my dad amend his previous returns to correct this. The peace of mind from getting an official answer was absolutely worth it.

Something else to consider - check if the 1099-R has a code in Box 7. This distribution code gives important information about the type of distribution: - Code 7 means normal distribution - Code 1 means early distribution with no exception - Code 4 means death The code might explain why the accountant was treating it differently. For example, some qualified distributions might have different reporting requirements.

Just want to add something - if your mom has been using the same accountant for years, it might be worth a quick call to them to ask about this discrepancy before filing differently. Sometimes there are specific situations or history with the account that might explain the different treatment. Good on you for helping your mom save money though. $400+ is a lot for what sounds like a relatively simple return!

I went through something very similar with my grandmother's taxes after my grandfather passed. The emotional stress of dealing with finances during grief is overwhelming, so kudos to you for stepping in to help your mom. From what you've described, FreeTaxUSA is likely correct. For traditional IRA distributions that are fully taxable (which most are), both line 4a (total distributions) and line 4b (taxable amount) should show the same figure. The fact that your mom's previous preparer left 4a blank is actually incorrect according to current IRS instructions. This might have been an older practice or just a mistake that carried forward year after year. The good news is that if the taxable amount was properly reported on 4b, it probably didn't affect the actual tax calculation - but it's still not the proper way to complete the form. I'd suggest sticking with FreeTaxUSA's approach. You're not only saving your mom money but also ensuring the form is filled out correctly. Just make sure to double-check that the amounts match what's shown in boxes 1 and 2a of her 1099-R form.

I'm sorry for your family's loss. Losing a spouse who handled the finances can be incredibly overwhelming, and it's wonderful that you're helping your mom navigate this. Based on what you've described, FreeTaxUSA is handling the IRA distribution reporting correctly. For traditional IRA distributions that are fully taxable (which is typical), both line 4a (total distributions) and line 4b (taxable amount) should show the same number that matches boxes 1 and 2a on the 1099-R. The fact that your mom's previous accountant left line 4a blank while filling in 4b is actually incorrect according to IRS instructions. This might have been an outdated practice or simply an error that was repeated year after year. While it likely didn't affect the actual tax calculation (since the taxable amount was still properly reported), it's not the standard way to complete the form. You're making the right choice by using FreeTaxUSA and following the proper reporting method. Not only are you saving your mom significant money, but you're also ensuring her return is filed correctly. The consistency between the software's calculations and the 1099-R amounts is a good sign that everything is being handled properly.

I'm really sorry for your loss and what a difficult situation this must be for your mom. It's clear you're being such a caring son/daughter by helping her through this. From everything you've described, FreeTaxUSA is absolutely doing this correctly. The fact that both lines 4a and 4b show the same amount matching boxes 1 and 2a on the 1099-R is exactly how it should be for a fully taxable traditional IRA distribution. The previous accountant's method of leaving line 4a blank while only filling 4b was definitely wrong according to current IRS instructions. Even though it probably didn't change the actual tax owed (since the taxable amount was still captured), it's not proper form completion. You're not just saving your mom $550 - you're also ensuring her taxes are filed more accurately than they have been in recent years. That's a win-win situation. Don't second-guess yourselves on this one. The software is handling it properly, and you have the 1099-R documentation to back up the amounts. Your mom should feel proud that she's learning to handle this herself with your help, and you should feel good knowing you're both saving money and doing it right.

I'm so sorry for your family's loss. Losing the person who handled all the finances can feel overwhelming, especially when dealing with grief at the same time. You're absolutely doing the right thing with FreeTaxUSA. Based on everything you've described, the software is correctly reporting the IRA distributions. For traditional IRAs where the entire distribution is taxable (which is typical), both line 4a (total distributions) and line 4b (taxable amount) should indeed show the same number that matches your mom's 1099-R. The fact that her previous accountant left line 4a blank while only filling in line 4b was actually incorrect according to IRS guidelines. This could have been an outdated practice that just got repeated year after year, but it's not the proper way to complete the form. What's great is that you're not only saving your mom over $500, but you're also ensuring her return is filed more accurately than it has been in recent years. The amounts matching between FreeTaxUSA and the 1099-R boxes 1 and 2a is exactly what you want to see. Your mom should feel confident moving forward with this approach. She's learning valuable skills and taking control of her finances during a difficult transition. You're being an amazing support system for her.

I'm so sorry for your loss and what your mom is going through during this difficult transition. It takes real courage to learn new financial skills while grieving. Based on everything you've described, FreeTaxUSA is absolutely handling this correctly. For traditional IRA distributions that are fully taxable, both line 4a (total distributions) and line 4b (taxable amount) should show the same number. The fact that these amounts match boxes 1 and 2a on your mom's 1099-R confirms you're on the right track. The previous accountant's practice of leaving line 4a blank while only filling line 4b was indeed incorrect according to current IRS instructions. This might have been an outdated method or simply an error that got carried forward year after year. While it probably didn't affect the actual tax calculation, it's not proper form completion. You're doing something wonderful here - not only saving your mom over $500 annually, but also ensuring her taxes are filed more accurately than they have been. The confidence she's gaining in understanding her own finances is invaluable and will serve her well going forward. Trust the software on this one. You have all the documentation to support the reporting, and multiple people here have confirmed this is the correct approach. Your mom should feel proud of taking control of her finances during such a challenging time.

I'm so sorry for your family's loss. Having gone through a similar situation when my dad passed and left my mom to handle finances she'd never dealt with, I completely understand how overwhelming this must be. You're absolutely making the right choice with FreeTaxUSA. The software is handling the IRA distribution reporting correctly - for traditional IRAs where the entire distribution is taxable (which is almost always the case), both line 4a and line 4b should show the same amount that matches boxes 1 and 2a on the 1099-R. The previous accountant's method of leaving line 4a blank while only filling line 4b was actually incorrect according to IRS instructions. This was likely either an outdated practice or a mistake that just kept getting repeated year after year. While it probably didn't change the tax owed (since the taxable amount was still captured on line 4b), it's not the proper way to complete the form. What's wonderful is that your mom is not only saving over $500 but also getting more accurate tax preparation. The fact that she's gaining confidence in understanding her own finances during this difficult time is incredibly valuable. You're being such a supportive child by helping her through this transition while empowering her to take control of her financial situation.

I'm so sorry for your loss. Losing someone who managed all the finances can feel incredibly overwhelming, especially while you're still grieving. You and your mom are absolutely doing the right thing with FreeTaxUSA. The software is correctly reporting the IRA distributions. For traditional IRAs where the entire distribution is taxable (which is the case for most traditional IRAs unless there were non-deductible contributions), both line 4a (total distributions) and line 4b (taxable amount) should show the exact same number. The fact that your mom's previous accountant left line 4a blank while filling in line 4b is actually incorrect according to current IRS instructions. This was likely either an outdated method that got carried forward year after year, or simply a recurring error that nobody caught. What's amazing is that your mom is not only saving $550 annually, but she's also getting more accurate tax preparation than she's been receiving. The amounts matching between FreeTaxUSA and boxes 1 and 2a on the 1099-R is exactly what you want to see for proper reporting. Your mom should feel confident moving forward with this approach. She's learning valuable skills and taking control of her finances during an incredibly difficult transition. You're being such a wonderful support system for her, and it sounds like she's gaining real confidence in understanding her own financial situation for the first time in years.

I'm so sorry for your loss and what you and your mom are going through during this incredibly difficult transition. Losing the person who handled all the finances can make everything feel overwhelming, especially while you're still processing grief. From everything you've described, FreeTaxUSA is absolutely handling the IRA distribution reporting correctly. For traditional IRA distributions that are fully taxable (which is typical unless there were non-deductible contributions made over the years), both line 4a (total IRA distributions) and line 4b (taxable amount) should indeed show the same number that matches boxes 1 and 2a on your mom's 1099-R. The fact that her previous accountant left line 4a completely blank while only filling in line 4b is actually incorrect according to current IRS instructions. This could have been an outdated practice that just kept getting repeated year after year, or possibly a simple error that never got caught. While it likely didn't affect the actual tax calculation (since the taxable amount was still being reported on line 4b), it's definitely not the proper way to complete Form 1040. What's wonderful is that you're not only helping your mom save over $500 annually, but you're also ensuring her taxes are being filed more accurately than they have been in recent years. The consistency between FreeTaxUSA's calculations and the 1099-R amounts is exactly what you want to see for proper reporting. Your mom should feel confident moving forward with this approach. She's developing valuable financial skills and taking control of her situation during such a challenging time. You're being an incredible support system, and it sounds like she's gaining real confidence in understanding her own finances. That independence and knowledge will serve her well going forward. Trust the software on this one - you have all the documentation to support the reporting, and the method FreeTaxUSA is using follows current IRS guidelines correctly.

I'm so sorry for your loss and the difficult situation you and your mom are navigating. Losing a spouse who handled all the financial matters can feel incredibly overwhelming, especially during such an emotional time. From what you've described, FreeTaxUSA is absolutely correct in how it's handling the IRA distribution reporting. For traditional IRA distributions that are fully taxable (which is the case for most traditional IRAs unless there were prior non-deductible contributions), both line 4a (total IRA distributions) and line 4b (taxable amount) should show the same amount that matches what's reported in boxes 1 and 2a of the 1099-R form. The previous accountant's practice of leaving line 4a blank while only filling in line 4b was actually incorrect according to IRS instructions. This could have been an outdated method or simply an error that got perpetuated year after year. While it probably didn't impact the actual tax owed (since the taxable portion was still captured), it's not the proper way to complete the form. What's really wonderful here is that you're not just helping your mom save $550 - you're also ensuring her taxes are filed more accurately than they have been. The fact that she's gaining confidence in understanding her own finances during this transition is invaluable and will serve her well moving forward. You should feel confident proceeding with FreeTaxUSA. The documentation supports the amounts being reported, and you're following current IRS guidelines properly. Your mom is fortunate to have such caring support during this challenging time.

I'm so sorry for your family's loss. Having been through a similar situation when my father passed and left my mother to navigate finances she'd never handled before, I completely understand how overwhelming and scary this transition must be. You're absolutely doing the right thing with FreeTaxUSA, and your instincts are correct to question the previous accountant's method. For traditional IRA distributions that are fully taxable (which is almost always the case unless there were non-deductible contributions made over the years), both line 4a and line 4b should indeed show the same amount that matches boxes 1 and 2a on the 1099-R. The fact that the accountant left line 4a blank while only filling 4b is definitely incorrect according to current IRS instructions. This was likely either an outdated practice that got carried forward year after year, or simply a recurring error that nobody caught. While it probably didn't change the actual tax owed, it's not proper form completion. What's wonderful is that your mom isn't just saving $550 - she's actually getting more accurate tax preparation than she's been receiving. The confidence she's building in understanding her own finances during this difficult time is incredibly valuable and will serve her well going forward. You should feel completely confident moving forward with FreeTaxUSA. You have the 1099-R documentation to support the amounts, and you're following proper IRS reporting guidelines. Your mom is fortunate to have such caring support as she learns to take control of her financial situation.