You will enter the 1099-R exactly as it reads. This will include the tax paid.
After entering this information, you will answer the questions that follow. One of the questions will be What Did You Do With The Money From This Payer? Your answer is moved the money to another retirement account.
This answer will open up more questions wanting clarification of exactly what type of account you rolled the funds into.
You will see that you won't have to pay taxes on the amount rolled over. The next page asks if you added the amount taken out for taxes to the rollover, you will answer No. Next, you will enter the exact amount rolled over.
Continue to get through the remainder of questions regarding this 1099-R.
When completely done, switch to Deductions and Credits from the tabs above. Select Estimates and Other Taxes Paid. Choose Other Income Taxes.
On this page it describes taxes already withheld. Click on the blue Where does the number for other income taxes come from? This Federal tax figure includes the amount withheld from the 1099-R.
This means you are getting credit for what was paid as taxes and you are not being taxed on the rollover amount.
