1099-R / income question see below:

Forum|Forum|7 years ago
June 1, 2019
3 replies
31 views

I have three 1099-R forms. Two are from 2 separate profit sharing/401k accounts. Those were rolled into a new Traditional IRA for 5 seconds, then into my existing Roth IRA. The third 1099-R is from that new Traditional account and is the sum of the 2 ps/401k accounts. Turbotax is calculating that duplicate amount as "new money" income when it really isn't. How do I fix that?

TurboTax Deluxe Online

macuser_22

Alumni - Champ

If entered properly the first two would be non-taxable rollovers and the third would be a taxable Roth conversion.

All three will show as income on the summary screen which shows gross income, not taxable income.

The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.

The income will be reported on line 4a and 4b on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on the 1040 line 4b. In the case of a rollover, nothing goes on 4b.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

EvanessaAuthor

Level 2

Thanks for the reply. Why are all three considered *income* when one of the 1099R's is the same money as the other two combined? For example, the two accounts were 2500 each and put into an IRA of which I received another 1099-R for 5000. It doesn't seem like it should be calculated as *income* twice because it wasn't *more income*.