Yes, this is correct and what you want to see. It sounds like your IRA distribution has been properly reported in TurboTax and not being taxed, as it was indeed a timely rollover.
A "1" in Box 7 generally means that a 10% early withdrawal tax penalty was withheld because the recipient was under 59 1/2. Since, per the above, this distribution was timely rolled over to another IRA, the penalty will not apply.
As per VolvoGirl, your withholding of "$1,500", shown in Box 4, will either be added to your refund or applied to your tax liability.
You can view your entire return or just your 1040 form before you e-file to make sure these entries were properly reported:
- Sign in to your TurboTax account
- Open or continue your return
- Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
- With the Tax Tools menu open, you can then:
- Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
- View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
Click here for information on how to preview your Form 1040 before filing.
Click here for the Form 1040 Instructions. See instructions for line 4a and 4b.
If this does not resolve your issue please feel free to contact us again.
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