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Level 1
March 26, 2020
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Should I adjust interest which is included in gross distribution (1099-R)?

  • March 26, 2020
  • 1 reply
  • 17 views
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Best answer by SusanY1

No, you should report the item as it is shown on the form.  Any interest included in the gross distribution from this type of account is a part of the ordinary income.

 

If some of the distribution is a return of your principal, this is usually accounted for in Box 2 but if it is not, you will have the option to enter information to adjust the taxable amount in the follow-up questions in TurboTax that will appear after you have completed all of your Form 1099-R entries. 

1 reply

SusanY1
SusanY1Answer
Level 15
March 26, 2020

No, you should report the item as it is shown on the form.  Any interest included in the gross distribution from this type of account is a part of the ordinary income.

 

If some of the distribution is a return of your principal, this is usually accounted for in Box 2 but if it is not, you will have the option to enter information to adjust the taxable amount in the follow-up questions in TurboTax that will appear after you have completed all of your Form 1099-R entries. 

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