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March 4, 2023
Question

476b ira rollover has G listed but it is being counted as income

  • March 4, 2023
  • 2 replies
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the 1099 R for Ira rollover into a bank Ira is counting the full amount as income. the box 7 has G in it so should not count as income. because of it being counted TurboTax figures that into the form 1095A Health Insurance Marketplace. we qualified for help with insurance at a reduced rate but because of this error Turbotax says we have to pay back the full amount which is about 8000 dollars

    2 replies

    March 4, 2023

    I assume this was a pre-tax account rolled into a traditional IRA.

     

    Please answer the follow-up questions carefully after you enter Form 1099-R:

     

    1. Click on "Search" on the top right and type “1099-R”  
    2. Click on “Jump to 1099-R”
    3. Click "Continue" and enter the information from your 1099-R
    4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
    5. On the "Did you move the money to a Roth IRA?" screen answer "No"

     

    Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount),it should show $0 and state ROLLOVER next to it.

     

     

    Please be aware, if a pre-tax account was converted to a Roth IRA then this will be taxable.

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    VolvoGirl
    Employee
    March 4, 2023

    Did you check the actual tax return?  If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right.

     

    If you rolled it over it should say Rollover to the left of the taxable amount on 4b or 5b.   

    Try deleting the 1099R and re enter it.  Keep going through all the questions to the end of that section.  That usually clears something out.