I was always taught to enter the information exactly as it appears on my 1099-R forms. By entering an amount into Box 2a and unchecking Box 2b, I am overriding the 1099-R information that was reported to the IRS. The problem appears to only be with the Smart Check and not the program itself. The software is using the amount in Box 1 as the taxable amount which is correct in this case.
According to the Smart Check, Box 2a must have a value. But, according to the "Learn More" Box 2a may be blank. Here's the text:
FORM 1099-R, BOX 2a: TAXABLE AMOUNT
Generally, the amount shown in box 2a is the amount of the distribution that is taxable. However, if the payer is unable to reasonably obtain the data necessary to compute the taxable amount, this box may be blank and the "Taxable amount not determined" box in box 2b will be checked. For pensions and annuities, if the "Taxable amount not determined" box in box 2b is checked, the gross amount of the distribution in box 1 will be used as the taxable amount if box 2a is blank.
