An amount was rolled over from one 401k to a new 401k with $0 taxable, so why does TurboTax insist on showing the full amount as taxable income?

[jayejay48]

1099-R:

Box 1 (Gross Distribution): $62,000   Box 2a (Taxable Amount): $0   Box 2b: total Distribution is checked   Box 7 (Distribution Code): G (Direct rollover of a distribution to a qualified plan

[ThomasM · Accepted solution]

Don't judge by the income summary screen in TurboTax.  Instead go straight to the tax return to verify what's being taxed.

Go up into the upper margin of the screen and click on My Account.  Then select Tools from the dropdown menu.  Next, select the first item in the list of Other Helpful Links, View Tax Summary.  Then look above the summary page and click on Preview My 1040.  That will load the 2-page tax return.

Check boxes 16a & 16b on the 1040 (12a & 12b on the 1040A).  The "a" box will show the gross amount, and the "b" box will show the taxable amount (which should be blank).

If that's not the case, then let me know and we'll explore further.

[jayejay48]

I got it! The f******  gov't form requires it to be that way.