I took a CARES act withdrawal and received a 1099-R... The Box 7 distribution code says 1B... there is no option for 1B on turbotax... only 1

Forum|Forum|5 years ago
February 26, 2021
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Irene2805

Level 15

On the 1099-R entry form, there are actually two areas in box 7 for codes.

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There are two boxes to enter codes. Select 1 from the drop-down list in the first box and select B from the drop-down list in the second box. [See Screenshot #1, below.]

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Click the box I have more than one value in Box 7 and a second Box 7 will appear. Select 1 from the drop-down list in the first box and select B from the drop-down list in the second box. [Screenshot #2]

Screenshot #1

Screenshot #2

gulsheenk

Level 5

I received 1099-R with box 7 distribution code of 1B as well with taxable amount of $0. Google search (link below) states Code 1 is for early distribution, but I have not withdrawal any funds. Yes, I had canceled my Long Term Care account as well. Why would that generate 1099 1B form ?

https://thelink.ascensus.com/articles/2020/12/16/irs-form-1099-r-box-7-distribution-codes

CatinaT1

Level 15

You are correct that a 1 is for early distribution. The B means it came from a Roth IRA. The taxable amount would be $0 since it came from a Roth account, but since it was an early distribution, you will see a 10% penalty for early withdrawal calculated on Form 5329.