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Retirement tax questions
OK, so this is an IRA and the money that you received was not a loan but was instead a distribution (or multiple distributions) of which you rolled $3,000 of one distribution back into the IRA. (Actual loans are only permitted from qualified retirement plans like a 401(k), not from IRAs.)
A code 7 Form 1099-R for a distribution from a traditional IRA is required to show the same amount in box 2a as is in box 1 and is required to have box 2a Taxable amount not determined marked. After entering the Form 1099-R exactly as provided by the payer, indicate in the follow-up that you moved the money to another retirement account (or returned it to the same account), indicate that you did a combination of rolling over, converting or cashing out the money, then indicate $3,000 as the amount rolled over. TurboTax will include the full $17,000 on Form 1040 line 4a but will exclude $3,000 from the taxable amount on line 4b. TurboTax will also include the "ROLLOVER" notation next to line 4b.