In 2019, I converted some significant amount from traditional IRA to ROTH IRA and received 1099-R where the box 7 is checked with # 2 — Early distribution, exception applies (under age 591⁄2). I am 58 years old. I believe this amount is taxable without early withdrawal penalty of 10%. However, when I input the information in 1099-R in Turbotax which I downloaded and installed in my desktop, it says that I do not owe any extra tax on this money based on the entry for box 7 on 1099-R, meaning that there is no penalty as well as no regular tax on the converted amount.
For 1099-R, box 1 (gross distribution) and box 2a (taxable amount) has the same amount and box 2b is checked in the box titled 'taxable amount not determined'.
How can I correct the situation in Turbotax so that the converted amount may be included in the AGI? Or, perhaps, is my understanding of tax rules wrong and in fact I do not have to pay tax for this amount?
