1099R - Total Income incorrect

[mark0206]

I rolled over $x amount to new plan rcvd 1099-R, then i withdrew part of $x amount form new plan rcvd 1099-R, entered into TT however its adding them both together when it should just be $x not $x+$x, how do i correct this? do i have the right package?

[RaifH]

Yes, TurboTax Deluxe Online is the correct package for entering retirement withdrawals. The amount that you rolled over to the plan should not be taxable unless you were moving it from a traditional retirement account into a Roth. What is in Box 7 for the distribution code for the first 1099-R? If it is not G, you can still tell the system it should be treated as a tax-free rollover if you deposited the money into your other retirement account within 60 days of withdrawing it from the first account:

1. Search for 1099-R and select the Jump to link in the search results.
2. If you have already entered this form, hit edit. Otherwise, continue through the screens to import or enter your 1099-R form.
3. When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and Continue.
4. On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and Continue.

[mark0206]

Thanks, I followed your steps but it still shows the incorrect total Example: i rolled over $100 (nontaxable) 7 G, i withdrew $50 to use from new plan 1 IRA/SEP/Simple X  (pension nontaxable), leaving bal. of $50 it's showing my Total Income with $150 instead of $100, am i missing a step or is this correct? 

[dmertz]

What you see in TurboTax is correct.  Your total income under tax code is indeed $150, with $50 being taxable and $100 being nontaxable.  The $100 nontaxable amount must be included on Form 1040 line 5a but excluded from line 5b with the word ROLLOVER next to this line.  The $50 taxable amount must be included on line 4b.  The nontaxable amount has no other effect on your tax return.