You can contact the issuer and ask them to correct it, but that could take a lot of time, and often they aren't willing to do this. However, since you will have other evidence that you rolled it over, there is another way to handle this within the TurboTax program that will give you the right result (your taxes back!) and allow you to resolve it quickly.
- Enter Form 1099-R exactly as it is issued.
- After you have entered all of your forms in this section, continue to the follow-up questions. (Note: There are quite a lot of them.)
- When you are asked, "What did you do with the money from This 1099" answer Rolled it over.
TurboTax will ask if you rolled it all over or just some of it. Here you can indicate that you rolled it all over, and it will not be taxed. This should result in a refund of your state withholding and no federal tax on your distribution.
Keep your statement that shows the deposit or transfer into the new IRA for at least three (3) years. Don't be alarmed if the IRS sends you a letter asking for it. Computers, not people, handle most of the letters that go out when data doesn't match (like your code on the 1099-R and your tax return.) If you get one of those letters, you will just reply with copies of your statements and it will resolve your issue. Our free Audit Support Center can help you, should this occur.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
