@Aloneintheworld , a Form 1099-R with code 7 in box 7 and the IRA/SEP/SIMPLE box marked is required by the IRS to have the same amount in box 2a as is in box 1 and box 2b Taxable amount not determined marked. For this reason, TurboTax properly ignores the amount shown in box 2a. You must enter this Form 1099-R exactly as provided by the payer.
The only reason that the taxable amount of this distribution could be less than the full gross amount of the distribution is if you have basis in nondeductible traditional IRA contributions and the taxable amount must be determined through calculations on Form 8606. If you have made a nondeductible traditional IRA contribution for 2022, you must enter that contribution under Deductions & Credits before TurboTax will have that information to include on Form 8606. If you have basis in nondeductible traditional IRA contributions shown on a previous year's From 8606, you must click the Continue button on the page that lists the Forms 1099-R that you have entered and, when TurboTax asks, indicate that you made nondeductible traditional IRA contributions in a prior year and then enter the amount. After TurboTax prepares Form 8606, TurboTax will include the full gross amount on Form 1040 line 4a but will include only the taxable amount on line 4b.
If you have rolled over into your traditional IRAs any after-tax basis from an employer plan and have not previously reported that on Form 8606, you must click the EasyGuide button in this section, mark the box to indicate that you rolled over funds from an employer plan and then enter the amount of after-tax basis rolled over from the employer plan. TurboTax will then prompt you to provide the required explanation for this adjustment to your basis in nondeductible traditional IRA contributions.
