I received a requested minor distribution in 2025 from my IRA. I am over 59 1/2 and the entire amount should be taxable to me. I did not roll it over. The 1099R shows Code 7 (normal distribution) and the IRA box is checked. the box "taxable amount not determined" is also checked! However, turbotax is saying that it is nontaxable. I do not think this is correct. Is the program wrong or am I entering it wrong!
It's normal for "taxable amount not determined" to be checked for an IRA distribution. The IRS instructions for Form 1099-R say to check it.
On the 1099-R the taxable amount in box 2a should be the same as the gross distribution in box 1. Did you enter both amounts that way?
Where and how does TurboTax say the distribution is nontaxable?
Look at your Form 1040. What are the exact amounts on lines 4a and 4b. If this is your only IRA distribution, line 4a should be blank and line 4b should be the amount from boxes 1 and 2a on the 1099-R. The amount on 1040 line 4b is taxable. Are any of the boxes checked on line 4c? If so, which one?
Yes I entered the amounts the same in box 1 and box 2a. The amount on 4a is the distribution and the amount on 4b shows as zero. Nothing checked in box c. Doesn't make sense.
I just noticed if I uncheck the IRA/SEP/Simple box, it taxes under pension income.
@joho3 You posted that you withdrew the funds from an IRA so the IRA/SEP/SIMPLE box must be checked. This will enter the funds withdrawn on Form 1040 Line 4a with the taxable amount on 4b
Delete that 1099R and enter it again Manually. That usually fixes things, especially if you imported it. After you enter the 1099R keep going g through all the follow up screens and questions. Do not change the little IRA checkbox. That’s important.
I did check it but that does not put anything in the taxable box. 4b continues to be zero! I have deleted and reentered twice! I did not import the information but manually typed it in.
Are you using the Desktop program? Try updating the program. Do you have Windows or Mac?
If you have the Desktop CD/Download program installed on your computer you go up to the top menu line and click on menu item Online then on Check for Updates. Or just close and reopen the program.
If your program says it's up to date or you can't update it then try the Manual Update for Windows
Also try updating Windows OS.
I am using the desktop program...I did all updates and did the manual update..no change. My windows is up to date as an hour ago. I have also opened and closed the program several times.
thanks for your suggestions but no luck!
Look at the Form 1099-R Summary in forms mode. Unless there's something you haven't told us, the amount of the distribution should be on lines 1, 2, 5, 8, and 10, and there shouldn't be anything else on the form. If there's anything on any other line, tell us what it is.
If the Form 1099-R Summary looks right, check to see if you have an override on 1040 line 4a or 4b, or both. You have to check on the "Form 1040 or Form 1040-SR Worksheet," not on Form 1040 itself. Right click the space for the amount on each line. If Cancel Override appears in the menu that pops up, click it to remove the override.
If you don't find an override on either line 4a or 4b, check to see if you have an override anywhere in your return. An override can cause the TurboTax calculations to break in unexpected ways, even if the override is in a place that you think has nothing to do with the problem. Occasionally people create an override accidentally by pressing Ctrl-D without realizing it.
Here's how you can find out if you have any overrides. On the Tools menu select My Tax Data. A window will open that lists all the entries in your return. Any entry that was overridden will say Overridden in the Source column. You can click on the heading of the Source column to sort on that column, so that any Overridden entries will be together. If there are Details or Import entries at the top of the list after you sort it, scroll down to see if there are any Overridden entries after the Details and Import entries. The item in the My Tax Data list tells you the form and line number that has the override. You can click on an overridden item, then click the Go To Form button at the bottom of the list to go to the form that has the override.
Remove any overrides that you find. After removing all overrides, see if you still have the problem.
To remove an override, click on the overridden entry, then either: