dmertz,
Thanks for your reply.
I have started 3 new tax returns and only used the Step-by-Step view to answer the questions, and whenever I use code U in box 7 when entering Form 1099-R TurboTax does create Form 5329-T.
As I stated it enters the amount from line 1 of the 1099-R on Form 5329-T in Part I, Column A, Line L in the "Distributions Not Subject to Additional Tax Smart Worksheet" and also on line 2. It also enters exception 12 on line 2 as well.
I agree that it should not generate Form 5329-T, but I have tried it several times and it always generates Form 5329-T when box 7 is set to code U.
I have entered the form 1099-R using code 7 in box 7 and no Form 5329-T is generated, then if I go in and edit the 1099-R and make box 7 a U Form 5329-T is then generated.
Have you tried this recently? It happens to me every time. I think there is a bug in the program.
I also did what you suggested, deleting Form 5329-T and the 1099-R and reentering it, but again the same thing happens.
Please help.
Thanks
