No. Make sure you did not check the "taxable amount not determined" box. The amounts in box 2a plus 6 should equal the gross distribution amount in box 1. You should have also received a 1099-B to reflect the sale of the stock back to the company (If this is an ESOP). The NUA would be reported in the capital gains section of TurboTax with the $4000 being taxed at the long term capital gain rate, probably 15%.
I ran your scenario through TurboTax and the box 2a amount came through as the taxable amount. You may want to delete the 1099R and re-enter making to indicate it is an IRA and you are not receiving periodic payments. It is also a qualified plan. I did indicate a 7 for your box 7 code. After you have logged in and are in your return in TurboTax Online:
- Go to Search at the top of the screen.
- Enter Form 1099-R in the search box.
- You will see a Jump To function that will take you to the 1099-R input screens.
- Delete the 1099R in question by clicking on the trash can next to the form
- Then add a new 1099R and manually enter your 1099R.
At the financial services screens, click "Change how I enter my form" then "Type it myself"
