1099r

[docfrick]

I have 2 1099r's that have a total distribution amount of 0 and taxable amounts of much higher numbers. one is a refund and one is a loan. turbo is telling me that the distribution number must be at least equal to but not lower than taxable amount. what should I do?

[ThomasM125]

Form 1099-R reports pension plan distributions. Box one should report the amount of the distribution and box 2 would report the taxable amount. It would be odd to have a taxable amount in box 2 but no distribution in box 1. 

What codes do you have in box 7? Maybe you can provide the numbers in each box so we can help you better.

[docfrick]

the 1099 that is a refund has code 8 the other one which is a loan {the amount still owed at retirement}is code 2. both have a dist amount of 0 and a taxable amount  showing how much there was. I was told from the pension system that the balance of the loan would be taxable even though when I took out the loan {3.5 years before retirement} they stated it would be taxable if it was taken out at or near retirement. the refund was for overpayment in 2019. I don't get why I should pay taxes on either one. but I need to fix whatever is wrong in my entries so tubo will accept it. 

[AmyC]

Answers to all your questions! This money is coming from a pre-tax retirement plan. You put money in and it was not taxed going in.

Code 8 means a return of excess contribution plus gain. You would have put too much in, earlier. Because you got a tax deduction for which you did not qualify,you are now adding it to your income.

Code 2- early distribution with an exception so there is no penalty. Straight tax on the income only. You are taking out money that has not been taxed previously, so it is time to pay tax.

The zeroes are odd. Logic says to me that box 1 and 2 would match in your situation; but, they don't. The only way to get them through, is to put into box 1 the same number that is in box 2a.