@macuser_22
Bingo. My form 1099-R has a blank box 2a and box 2b is checked that taxable amount could not be determined. When I put $30,000 in box 2a and uncheck 2b, TurboTax correctly calculates that none of the distribution is taxable income for 2020. This tells me that the calculation only works if the financial institution managing my retirement has an entry in box 2a and unchecked 2b. TurboTax cannot properly handle the scenario where a taxable amount was not reported on 1099-R.
Glad I caught the error. When TurboTax calculates correctly I get a $3000 refund. When TurboTax calculates wrong I owe $9000.
