hockchailim
Returning Member

1099-Q why TurboTax is adding the Box 2 (Earnings) to Box1 (Gross Distribution) as income

On my daughter's 1099-Q, Box1 has an amount of $9786.00, Box 2 has an amount of 3180.96, and Box 3 has an amount of 6605.04. 

If I entered the 1099-Q as stated, TurboxTax shows her total income as below

Kaylyn1099-QWithEarning.PNG

 

But if I edit the 1099-Q, and change the Box2 amount to 0 (leaving everything else unchanged), her income become below (Other income becomes 0):

Kaylyn1099-QWithoutEarning.PNG

I don't understand why the Box 2 amount increases her income by $3,016.  My understanding is that Box 2 + Box3 = Box 1.  So, Box 2 is already part of Box 1.  Why would Turbo Tax, add it to Box 1?