My 1040 is showing my 1099-R nontaxable income as taxable which has made the amount I owe skyrocket. Do I need to file an amendment to fix or will the IRS catch it?

[JamesG1 · Accepted solution]

Have you already filed your Federal 1040 tax return?  Has it been accepted?

If your Federal 1040 tax return has been filed and accepted, you will likely have to amend your Federal tax return by filing an amended tax return. It may happen, but I would not count on the IRS correcting the issue.

If your Federal 1040 tax return has been filed and rejected, you will be able to enter the TurboTax software and correct the error before filing your Federal 1040 tax return.

Amended tax returns will not be available before February 23. See forms availability here.

If you used TurboTax Online, simply log in to your account and select Amend a return that was filed and accepted.

If you used the CD/download product, sign back into your return and select Amend a filed return. 

You must file a separate Form 1040-X for each tax return you are amending.

See also this TurboTax Help.

[Anonymous]

Yes it has already been filed accepted by the IRS. Thank you for the detailed answer. 

[fanfare]

what is the box 7 code on the 1099-R?

what is the mistake you made that turned non-taxable amount into taxable amount ?

@Anonymous 

[Anonymous]

It's code G which is what I put into TurboTax but it's showing my total gross amount on line 5b of the 1040. I'm  not sure what went wrong in the system for this to happen. First time I've had an issue in the 7 years I've been using TurboTax but that's on me. I should have paid closer attention before submitting it. 

[Critter-3]

Well don't do anything in the program until the IRS has fully processed your return and the original refund has been recieved.  Only then should you start the amendment process.  When you do review the 1099-R input screen ... did you accidentally enter the amount in box 1 in box 2a when the box should have been left blank ?  If you did then you probably told the program it was correct thus overriding the program's calculation of the code G.    Did you enter  code G in box 7 ?   

[Anonymous]

Well it's saying I owe (a lot) rather than getting a refund but yes, the plan was to wait until the IRS processes on their end. I'm pretty sure I put all of the numbers in the correct spots since everything was 0 but box 1 and of course box 7 with the code. I should have double checked everything more carefully though. 

[LindaS5247]

Distribution code G is a direct (trustee to trustee) rollover. You do not pay any tax on it. The gross distribution will be included on Form 1040 line 5a, but nothing will be added to line 5b or 11, which is the taxable amount.  If you printed your return you can check those lines.

In most cases, your 1099-R will show $0.00 as the taxable amount in Box 2a, (unless you rolled over your distribution to a Roth IRA). 

As per Critter-3 you will probably need to file an amended return once your refund is obtained.

Click here for information regarding filing an amended return.

[fanfare]

Since you owe, you will not hear from the IRS when your return is processed, until some time after April 18th.

When 1040-X is opened, click AMEND then reenter the 1099-R.

If you erroneously check the box "taxable amount not determined" you will get this error.

@Anonymous