When I uncheck the IRA/SEP box there are no changes at all to my refund and no forms are added. However, I am hesitant when it comes to doing this because I don't know if this info is transferred electronically or if it's just the info on the official. I can do an override but then there are warnings about issues with electronically filing.
As per IRS instructions: "More than one distribution. If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 4b. Enter the total amount of those distributions on line 4a."
AND
"Partially Taxable Pensions and Annuities
Enter the total pension or annuity payments (from Form 1099-R, box 1) on line 4a. If your Form 1099-R doesn't show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 4b. But if your annuity starting date (defined later) was after July 1, 1986, see Simplified Method, later, to find out if you must use that method to figure the taxable part.
You can ask the IRS to figure the taxable part for you for a $1,000 fee. For details, see Pub. 939.
If your Form 1099-R shows a taxable amount, you can report that amount on
line 4b."
TT has not followed the multiple distribution instruction in the past because when I had more than one fully taxable IRA distribution 15a was always blank but 15 b would show the taxable amount. However, line 16 a and b would be filled in correctly with my pension information. Now that line 15 and 16 have been combined it is confusing if one has a partially taxable distribution (pension, annuity or IRA). Before one could see all of the 1099-R information because pensions/annuities and IRAs were listed separately but now with everything combined this is not the case. 4a needs to include all of the distributions for those of us who have multiple distributions with one or more being partially taxable. As per my previous post, I was advised by the IRS rep that, in my case, 4a needs to include all of my distributions.
IMO, the IRS should have left IRAs and pensions/annuities separate. I tried out one of the free tax programs and all of my information was filled in correctly on 4a and 4b. Everything is also correct on my state form. It's the 1040 that is the issue.
