dmertz,
thank you for response. What you described is the correct principles the tax forms are designed for. Unfortunately a possible linking bug breaks the logic process.
Just a simple test can show the case: in Turbotax Deluxe, 1) Go "FORMS" 2) Open/create a form 1099R, (make sure at box 7: sub-box”IRA/SEP/SIMPLE” checked ) then input "4000" to box 1(Gross distribution),and "2000" to box 2a(taxable amount) 3) Then open the form 1040, check the value in box 4b(taxable amount). It should be "2000" not "4000". i.e. 1040 box-4b should be linked to 1099R box-2a, not box-1.
Note: In most of 1099Rs,box-1 and box-2a have the same amount so that this bug usually has not been noticed.
Wc
