Get your taxes done using TurboTax

I will add one caveat.    When there is a 1099-R with box 4 tax withholding the the IRS requires a copy be sent to them.  TurboTax complies by sending the 1099-R worksheet to the IRS, but the 2nd 1099-R does not have tax withholding to that worksheet is not sent to the IRS.

 

It is possible that the IRS computers that match the 1099-R submitted by the financial institution will be compared to the tax return and the box 1 amounts will not match (even though the 1040 line 4 does match - the IRS computers are not very smart) and the IRS will sent a letter thinking that you under reported income.  

 

A simple phone call to the number on that letter should take care of that should it happen.

 

To avoid any possibility of that happening at all, do not e-file but print and mail file and attach a copy of the actual 1099-R received from the financial institution that will match.     Printed and mailed tax returns do not contain any TurboTax 1099-R forms, only the 1040 form - you must attach the 1099-R copy and mail it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**