I received a 1099-R for a pension account that I rolled over to an IRA rollover account. No taxes were withheld. Only box 1 had a number. Box 7 had code G (direct IRA rollover). There were no TurboTax questions on this item about an IRA rollover. It just ask a question about rollover to a Roth IRA. When my gross income is calculated, it adds this amount to the total gross which is incorrect. It does not seem to indicate I owe taxes on the amount (does not change my taxes owed/refund). Is this OK?
Yes, it is okay. So what happens is this:
Once you enter the code G direct rollover, the program recognizes it as a rollover nontaxable event. The total amount of the rollover should be reported on your Form 1040 line 4a, as a nontaxable amount. Since this is a nontaxable amount, it shows zero amount or nothing on line 4b as the taxable number. You do not pay any taxes on it.
Yes, it is okay. So what happens is this:
Once you enter the code G direct rollover, the program recognizes it as a rollover nontaxable event. The total amount of the rollover should be reported on your Form 1040 line 4a, as a nontaxable amount. Since this is a nontaxable amount, it shows zero amount or nothing on line 4b as the taxable number. You do not pay any taxes on it.