990-T and 1040 tax return

Submitted by Jean Bednarz on Fri, 2017-03-10 15:28

Question 1:
My custodian will file 990-T form for my IRA account. How do I incorporated the tax I paid on 990-T into 1040 form?

Question 2:
In my non-IRA account I believed that I will have to file 990-T myself? and again, how do I incorporate the tax I pay into 1040 return?



Submitted by Alan - IRA critic on Fri, 2017-03-10 15:47

  1. You don’t report this anywhere on the 1040. Each is a totally separate return. The tax and cost to file are deducted directly from the IRA and no IRA distribution is reported on a 1099R.
  2. Not sure if you need to file a 990 T on taxable accounts. Check with a tax professional on that.

Submitted by David Mertz on Sat, 2017-03-11 15:07

Regarding #2, Form 990-T is a tax return for tax-exempt entities.  You are not a tax-exempt entity, so you do not file Form 990-T.  UBTI that you receive is simply part of the income reported on your individual tax return on which you will pay tax.

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