It is not clear that this is an error. Let's look at that first.
What is the code in box 7? This can make all the difference in the world. And is this from an IRA or not? The following are general answers based on whether it is from an IRA or not.
Was this 1099-R from an IRA (the IRA/SEP/Simple box next to box 7 should have been checked if it were an IRA)? If the answer is YES, then please see the following from dmertz on a similar issue:
a Form 1099-R with code 7 in box 7 and the IRA/SEP/SIMPLE box marked is required by the IRS to have the same amount in box 2a as is in box 1 and box 2b Taxable amount not determined marked. For this reason, TurboTax properly ignores the amount shown in box 2a. You must enter this Form 1099-R exactly as provided by the payer.
The only reason that the taxable amount of this distribution could be less than the full gross amount of the distribution is if you have basis in nondeductible traditional IRA contributions and the taxable amount must be determined through calculations on Form 8606. If you have made a nondeductible traditional IRA contribution for 2022, you must enter that contribution under Deductions & Credits before TurboTax will have that information to include on Form 8606. If you have basis in nondeductible traditional IRA contributions shown on a previous year's From 8606, you must click the Continue button on the page that lists the Forms 1099-R that you have entered and, when TurboTax asks, indicate that you made nondeductible traditional IRA contributions in a prior year and then enter the amount. After TurboTax prepares Form 8606, TurboTax will include the full gross amount on Form 1040 line 4a but will include only the taxable amount on line 4b.
If you have rolled over into your traditional IRAs any after-tax basis from an employer plan and have not previously reported that on Form 8606, you must click the EasyGuide button in this section, mark the box to indicate that you rolled over funds from an employer plan and then enter the amount of after-tax basis rolled over from the employer plan. TurboTax will then prompt you to provide the required explanation for this adjustment to your basis in nondeductible traditional IRA contributions.
Was this 1099-R not from an IRA (the IRS/SEP/Simple box near box 7 is NOT marked)?
In the interview that follows the entry of the 1099-R data, you are asked if this is a qualified plan or not. This answer affects the subsequent screens (I would think that most 401(k) plans if that is what this is, are qualified plans).
You will be asked if you get periodic payments. If YES, then you will be asked if you started receiving distributions prior to this year. If you did, you will be asked if the Box 2a showed the taxable amount in previous years. IF YOU ANSWER YES, then the box 2a amount will be used as the taxable amount. Otherwise, you will be led through a series of questions in which TurboTax attempts to calculate the taxable amount, and the 2a amount is ignored.
In any case, your entries caused box 2a to not be used...now you have to tell us what your entries were.
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