1099r different amount on 1 and 2a. Rmd distribution. What number use where?

[gailandbob]

As taxable income

[jtax]

Turbo tax will ask you for the amount in Box 1 and then the amount in Box 2a. So you enter both numbers. TT will then ask you some other questions and determine the taxable amount. Verify it looks correct when you review your 1040 at the end.  (Line 4a vs 4b, 5a vs. 5b as appropriate).

Usually, the taxable amount is the amount in box 2a. That is supposed to be the gross amount in Box 1 minus your the return of some of your after-tax contributions in the investment vehicle (retirement plan, insurance, annuity, etc) , making the distribution.

Sometimes, however, the financial institution does not have all the information you have (such as after-tax contributions to an IRA that has been rolled overed perhaps multiple times) and so you will have to adjust box 2a to be correct.

[SteamTrain]

@gailandbob 

(The following is not involved with 1099-R forms from actual IRA accounts, only for other pension accounts, 401ks, TSPs etc)

If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present  (i.e. you needed to answer YES).  

Answering YES will use the box 2a $$ amount on your for 1040.  Checking lines 5a and 5b on your form 1040, before and after entering that 1099-R, and the 5b amount should be lower than line 5a.

 (But if you answered No, and already entered some $$ in the "General" or "Simplified" calculation area ,you might need to delete your 1099-R first and re-enter it from scratch...not sure of that though)

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