After you enter a 1099-R, you are asked a series of questions, that are used to determine the taxability of the distribution. Can you answer the questions asked about what shows on your return and double check that the amount is not included in line 7 or elsewhere? Also check your return for the existence of a Simplified method worksheet, which you can see if you print all worksheets as well as forms. The IRS receives copies of your 1099-Rs and usually ends you a notice within 2 years if what you show on your return appears incorrect based on your 1099-R.
