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2024 TT Premier Bug - NUA taxable amount not properly transferred to Form 1040 - Line 5b.

I have a 2024 1099R for an NUA in-kind distribution of my company stock from my 401k provider to an external brokerage account.  None of this employer stock was sold in 2024.  My 1099R has values in Box 1 - Gross distribution, Box 2a - Taxable Amount (cost basis), Box 6, NUA, and Box 7 distribution code is 2.  (retired from my employer after age 55, but not 59 1/2 yet).    After entering this 1099R, TurboTax tells me "Congratulations, no additional tax ....".   

 

On my 1040 Line 5a includes the Box 1 amount, however, Line5b is blank - not the taxable cost basis amount in Box 2a.   

 

From Net Unrealized Appreciation (NUA): Tax Treatment & Strategies - TurboTax Tax Tips & Videos,  under Key takeaway #3 "However, your cost basis in the stock is taxed as ordinary income for the year of the distribution."

 

Can someone confirm this is an issue?  Is there a better way to submit a bug report against TT?

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1 Reply
DaveF1006
Expert Alumni

2024 TT Premier Bug - NUA taxable amount not properly transferred to Form 1040 - Line 5b.

Check your 1099R entry and make sure that there is an amount reported in Box 2B.  If not, put in the cost basis amount that should be recorded here in Box 2B of the 1099R..

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