The transfer from the 403b should be entered as a rollover.
You may have entered the wrong code on the 1099-R (for the 403b) screen. It's easy to overlook this question, but it's crucial.
Click Federal Taxes (top menu)
Click Wages & Income (just below top menu)
Scroll down to Retirement Plans and Social Security and click Show More (if necessary)
Edit/Revisit that 1099-R and in Box 7, enter the code from your 1099-R form.
Hopefully the code is G (direct rollover). If not, then take these additional steps:
At the What Did You Do with
The Money screen indicate that I
moved the money to an IRA or another retirement account and then
select rolled over.
The net effect should be $8k added to your taxable income, and if you were under 59.5, an additional 10% early withdrawal tax.
