You are correct. Rollovers are not considered taxable income, but they must show on your tax return anyway. If your wife's form 1099-R box 7 shows code G, all you have to do is enter the form into TurboTax exactly as it appears and the rollover will be shown automatically. If you have any other code in box 7, when going through data entries, TurboTax will ask what you (your wife) did with the money. You will be able to indicate that money was moved to another retirement account - this option will ensure rollover, nontaxable treatment on your tax return.(see pic).
Please
follow below steps to enter your form 1099-R:
- Federal Taxes
- Wages and Income
- Scroll down to Retirement
Plans and Social Security
- Select IRA, 401(k), Pension Plans (1099-R)
