Question
Evonne Williams (32) is filing as a single taxpayer. Evonne was the beneficiary of one of her great-grandmothers traditional IRAs. She passed away during the
Evonne Williams (32) is filing as a single taxpayer. Evonne was the beneficiary of one of her great-grandmothers traditional IRAs. She passed away during the year, and Evonne took a $2,000 total distribution from the IRA. She then used the money to pay down her credit card debt. Evonne did not qualify for any COVID-19 related exceptions for IRA distributions. As far as she knows, all of her great-grandmothers contributions to the account were deductible. Evonnes only other income during the year was $44,000 in wages. She will claim the standard deduction. Evonne received the following Form 1099-R reporting the IRA distribution. The form shows a code "4" in box 7, indicating that the distribution is due to death. When Evonne files her 2020 return, how much of the distribution must she include in her total income?
$0
$200
$1,800
$2,000
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