Question

For a 1099r why does Turbo tax use the gross distribution instead of ther taxable distribution to calcuate taxable income?

Forum|Forum|7 years ago
June 4, 2019
2 replies
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My 1099R has the taxable amount not determined box checked. I have been able to determine this value and entered it in box 2A. Turbo Tax, however, used the gross distribution from Box 1 to calculate the taxable income. How do I correct this?

TurboTax Deluxe Online

D

dmertz

Employee

When you rolled the 401(k) over to the IRA, assuming that the entire gross amount was rolled over, the after-tax basis in your 401(k) became nondeductible contribution basis in your traditional IRAs. To get the distribution from your IRA reported correctly, you must do the following:

Enter the Form 1099-R as reported on the form provided by the payer (including box 2a being the same as box 1).
Click the Continute button on the Your 1099-R Entries page.
Indicate that Yes, you made nondeductible contributions to your traditional IRAs.
On the next page, click the EasyGuide button
Proceed to the page where you can mark the box labeled I transferred money from an employer's retirement plan in 2016 or a previous year.
Enter the dollar amount of basis amount rolled over from the 401(k) plan as the Net Rollover Basis From Employer Plans.
Enter the explanation regarding the adjustment to basis resulting from the rollover from the 401(k).

TurboTax will use this, the amount of your IRA distribution(s) and your 2016 year-end balance in traditional IRAs to calculate on Form 8606 the amount of your distribution that is taxable.

C

conkeyroAuthor

Thank you so much:

VolvoGirl

Employee

Where are you looking?  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 your return and make sure it's right.

For 1099R check the actual 1040 line 15b or 16b for any taxable amount.  If it was a rollover it should say ROLLOVER by the "b" line. (1040A lines 11b & 12b)

Then you should not fill in box 2a.  You enter the 1099R exactly as shown and answer the follow up questions to determine the taxable amount.  Leave 2a BLANK.

VolvoGirl

Employee

To preview your Online return, go to My Account at the top. Then Tools, then View Tax summary. Then you can click on Preview My 1040 at the top. OR click Review near the top of your screen, and then click Summary right below it. Then Near the bottom of the We Guarantee Your Maximum Refund screen, click the Preview Return link.