It depends.
You should re-confirm you entered the information in TurboTax exactly as it appears on your 1099-R and pay extra attention to the codes in Box 2b and Box 7. However, if you received the distribution and used the money on expenses, etc. and did not perform a rollover, etc. it will probably be taxable.
While the Form 1099-R may seem related to the refund decrease it may not be the actual cause. In order to fully understand your tax returns, you should switch to Forms Mode (since you appear to be using TurboTax CD/Download) and review Form 1040. The amounts on Form 1099-R are usually populated on Form 1040 Lines 15a, 15b, 16a, 16b, and 64. You could print a copy of Form 1040 before entering Form 1099-R and then print another copy after entering Form 1099-R and compare to determine which amount(s) is causing the refund decrease.
Please review the following TurboTax FAQs for more information:
