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New Member
posted Dec 28, 2019 8:11:46 AM

1040 shows total disribution taxable

Form 1040 is entering 1099-R form total distribution as taxable instead of taxable amount entered on box 2a. Why is this happening?

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5 Replies
Level 15
Dec 28, 2019 8:30:00 AM

Delete the Form 1099-R and re-enter.  The taxable amount shown in box 2a will be reported on the Form 1040 Line 4d for Pensions and Annuities or Line 4b for IRA's.

 

To enter, edit or delete a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

Level 15
Dec 28, 2019 2:32:33 PM

On the Form 1099-R, is the code in box 7 either code 1, 2, or 7 and the IRA/SEP/SIMPLE box marked?  If so, the amount in box 2a is to be ignored.

Returning Member
Mar 6, 2020 7:48:54 AM

Why should I ignore the amount in 2a of my 1099r if box 7 is a 7 and IRA/SEP/SIMPLE is X?

Level 15
Mar 6, 2020 8:24:05 AM

TurboTax ignores it because on a code 1, 2 or 7 Form 1099-R with the IRA/SEP/SIMPLE box marked the taxable amount is required to be determined on the taxpayer's Form 8606 when less than the full amount is taxable.  This makes the amount in box 2a of such a Form 1099-R essentially meaningless.  For a regular distribution from a traditional IRA, the IRS requires that the amount in box 2a be the same as the amount in box 1 to indicate that the distribution is usually fully taxable, so when the amount in box 2a is different from the amount in box 1, TurboTax simply treats it as erroneous and ignores it. 

 

(TurboTax does pay attention to a $0 amount entered in box 2a which TurboTax treats as a special indication that this is a nontaxable return of excess contribution after the due date of the tax return for the year for which the excess contribution was made, but that's an extremely rare transaction that requires the tax return to include an explanatory statement describing the return of excess contribution.)

Returning Member
Dec 7, 2021 11:57:44 AM

deleted by poster.  user error.