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Level 1

Solved

1099-R show code Q; however, distribution is included in income. Should this Roth not be tax exempt?

Forum|Forum|7 years ago
June 1, 2019
1 reply
7 views

No text available

TurboTax Deluxe Mac

Best answer by dmertz

Code Q indicates nontaxable income. TurboTax properly includes this as reportable on Form 1040 line 4a but excludes it from taxable income on line 4b. TurboTax's summary shows the sum of both taxable and nontaxable income.

Level 12

You are correct - Code Q means the requirements for tax free distributions are met and distribution is not taxable. It will show as nontaxable on your tax return, although it is included in your total income.

You may look at your Form 1040 and verify, line 15a will include distribution, but line 15b will be blank; it means nontaxable.

I think you are a MAC user.. here is information on how to look at the form 1040, using Forms in Mac:

https://ttlc.intuit.com/questions/1914351-how-do-i-switch-to-forms-mode-in-the-turbotax-for-mac-soft...

Level 2

I am not on a MAC, but I am hiting the same issue,

The 1099-R shows 'Q' for the distribution box-7, but the distribution is still added to income

Is any one else finding this? Will it come off somewhere else?

dmertzAnswer

Level 15

Code Q indicates nontaxable income. TurboTax properly includes this as reportable on Form 1040 line 4a but excludes it from taxable income on line 4b. TurboTax's summary shows the sum of both taxable and nontaxable income.