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Roth IRA Distribution - showing as Income

Forum|Forum|5 years ago
February 19, 2021
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I am 62 and have had my Roth IRA longer than 5 years and it is still active. I took a distribution in 2020 and it is being added to my income. I have a 1099R for a Roth IRA distribution that coded T as exempt from taxation so why is Turbo Tax counting it as income and my tax due seemed to increase ... is this correct?

Best answer by DanaB27

Please make sure you answer the follow-up questions after your entered your 1099-R. You will need to click "continue" on the "Your 1099-R Entries" screen to get to the questions.

Open your return
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Enter the information from your 1099-R
Click "continue" when you are on the "Your 1099-R Entries" screen and answer all follow-up questions.

Also, please look on Form 1040 line 4b to see the taxable amount (this should be $0) because TurboTax summary page shows gross income and not taxable income.

D

DanaB27Answer

Please make sure you answer the follow-up questions after your entered your 1099-R. You will need to click "continue" on the "Your 1099-R Entries" screen to get to the questions.

Open your return
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Enter the information from your 1099-R
Click "continue" when you are on the "Your 1099-R Entries" screen and answer all follow-up questions.

Also, please look on Form 1040 line 4b to see the taxable amount (this should be $0) because TurboTax summary page shows gross income and not taxable income.

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