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Level 1
posted Mar 6, 2023 12:00:55 PM

1099-R turbo tax shows taxes due for withdrawal from nonqualified annunity less than purchase price

0 7 515
7 Replies
Expert Alumni
Mar 6, 2023 12:17:12 PM

Please clarify and expand on your question.  What boxes on the 1099-R have data in them?  That may be the determining factor along with the type of distribution code shows in Box 7.

Level 1
Mar 6, 2023 12:32:42 PM

1099-R

Box 1. 87,828

Box 5. 94,561

Box 7. 7D

Expert Alumni
Mar 6, 2023 12:58:48 PM

TurboTax may also be accounting for box 2a amounts so please clarify that as well.  

Level 1
Mar 6, 2023 1:00:43 PM

1099-R 

Box 1  87,828

Box 2b Total Distribution

Box 5   94561

Box 7  7D

Level 1
Mar 6, 2023 1:01:47 PM

Box 2a  blank

Expert Alumni
Mar 6, 2023 1:31:47 PM

If you choose the General Rule to calculate the taxable portion of your pension distribution and enter $0 for the taxable amount, it would not show as taxable on your tax return. You will see those options after you enter your form 1099-R in TurboTax.

 

Level 15
Mar 6, 2023 1:54:13 PM

Using the General Rule in TurboTax simply puts in box 2a whatever amount you enter for the taxable amount under the General Rule.  In this case, with box 2b Taxable amount not determined being unmarked, the payer mistakenly left box 2a blank when they meant to indicate that $0 was taxable.  (Unfortunately there are payers that think that a blank box 2a means $0 when, in fact, box 2a should always have a numeric value when box 2b Taxable amount not determined is unmarked.)

 

Being nontaxable income, the amount from box 1 will be included on Form 1040 line 5a but will be excluded from line 5b.