1099-R increasing my refund?

13 replies
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When I entered my 1099-R information, It kept increasing my return by a large amount. Shouldn't it have decreased it?

Vanessa AAnswer

Alumni - Intuit

Is it increasing your state or federal refund? In general, a 1099-R distribution would decrease or not affect your return unless you had taxes withheld.

Did you enter it in the correct spot? As a 1099-R or did you enter it as a W-2?

Where do I enter my 1099-R?

The best way to determine why your refund went up instead of down would be to write down the numbers from your 1040 with the 1099-R's in place, then delete them and compare the numbers on your form 1040 to the numbers you wrote down. You can also print it out (if you already paid for the program)

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040

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AmyC

Alumni - Intuit

It depends. It may have increased your income to qualify for credits. If it was only adding income, then the amount of tax withheld may have been larger than necessary and increased your refund.

Otherwise, just adding money, no credit and no tax withheld, your refund should go down.

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VolvoGirl

Level 15

Why did you get a 1099R? What code is in box 7? If you did a conversion or rollover you may be getting any tax withholding back.

paul1919Author

Level 2

I received the 1099-R for withdrawing money fro a roth ira and a regular ira. The roths were not taxed but the regular ira(s) were except that the people at Charles Schwab sent the money to the wrong state. So I put $0 withheld for the tax and used the correct state and payer id so it could be taxed. The distribution code is 7 and the ira/sep/simple is checked.

Vanessa AAnswer

Alumni - Intuit

Is it increasing your state or federal refund? In general, a 1099-R distribution would decrease or not affect your return unless you had taxes withheld.

Did you enter it in the correct spot? As a 1099-R or did you enter it as a W-2?

Where do I enter my 1099-R?

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

torobert222

Level 4

TurboTax pulls your info from your prior return, and bases your initial refund off of that info. your 2024 1099R may have been smaller than your 2023 1099R.

If you are divorced with children, and this is your year to claim them, that will also give you a bigger return.

paul1919Author

Level 2

Thanks but 2024 had a bigger withdrawal. Also still married and the child just turned 30.

paul1919Author

Level 2

@Vanessa A

Thank you for your suggestion. I printed a copy and then deleted the 1099-Rs. Saw the initial Federal withholding tax from SSA. Then when I entered the federal taxable amount for the 1099-R, the refund dropped. Next, when I entered the federal tax withheld from the 1099-R, the refund amount increased. I guess it shows that I withheld more than necessary so the refund increased.