The presentation for Lines 4a and 4b has changed in a 1040 return in 2018.

  • Article Type:
  • Documentation
  • Last Modified:
  • 03/22/2019

Objectives

To explain how we are presenting line 4a - IRSa, pensions, and annuities and 4b - Taxable amount in a 1040 individual return.

Environment

  • 1040
  • IRAs
  • Pensions
  • Annuities
  • CCH Axcess™ Tax
  • CCH® ProSystem fx® Tax

Details

The logic of how the input flows the same as last year, however last year the IRAs and pensions/annuities were reported on separate lines. This year the IRS combined these items into one line. We pool all of the IRAs together and if the gross and taxable amounts are the same the number will only appear on line 4b and will not appear on line 4a. The only time amounts will appear on both lines 4a and 4b is if the total of all IRAs have separate gross and taxable amounts. Then we pool all of the pensions and annuities together and do the same thing. This can cause line 4a to be smaller than 4b.

This presentation is correct per the IRS instructions and will also prevent electronic filing rejections.

Additional Information

N/A

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