1099-R box 7 is code J.
Per the IRS, I know the amount is not treated as income and is not deductible. I also know the amount must be documented on line 10 of Form 8889 under Qualified HSA Funding Distributions.
So I enter Forms mode (TurboTax desktop) and go to Form 8889 and right-click on line 10 box A and select Data Source. It tells me that field is populated by form 1099-R line 1f. After clicking the hyperlink, I’m taken to the 1099-R summary. I cannot populate this box and the message above says to use QuickZoom to enter on the 1099-R Worksheet.
So I click QuickZoom and select the 1099-R in question, and Open Form. Then I scroll down to the section titled Insurance and enter the amount in the line for "Amount of health savings account (HSA) funding distribution" and enter the amount of the distribution that when from the Roth IRA to my HSA.
After doing this, no calculations are made for my taxes. TurboTax still treat the 1099-R income as taxable.
Is there something else I need to click or populate in Forms mode to make TurboTax perform the correct calculation and not treat the 1099-R as income?
