Support CenterWhat is the logic behind the calculation on form 1040 lines 4a and 4b?
The IRScombined the IRAs into one line, so if the gross and taxable amounts are the same, the number will only show on line 4b and not 4a. Only if the total of the IRAs have separate gross and taxable amounts will lines 4a and 4b have amounts, and lines 5b and 5a for pensions and annuities.
This can cause line 4a to be smaller than 4b, and line 5a to be smaller than 5b. The rules have not changed as to what is displayed for the gross amount.
Note:
For IRAs, amounts are not reported in 4a unless one of the 4 exceptions in the instructions are met. If none of the IRA distributions fall under the exceptions listed in the instructions to display, it is different from what is stated. Refer to the instructions as well as the AGI Split worksheet which shows the allocation for lines 4a gross and 4b taxable.
The exceptions start on page 28 of the 1040 instructions.
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