I have the premier turbotax download.
I received a 1099-R from Prudential. They have the gross compensation and the taxable amount the same. They did NOT check the taxable amount not determined. I looked at Prudential website, and they say that they report the full earnings on 1099-R, and do not keep track of cost basis for non-qualified accounts. They say we are supposed to adjust it on our tax return.
Wouldn't that get the IRS attention? How can I adjust it on turbotax? I do not see a question and answer section that asks about cost basis?
I should not be paying taxes on most of my annuity income, so how do I fix this?
Thank you!
I went back into the program and changed my answer to the annuity question is line 2 always the taxable amount you used in the past? (or something to that effect). I said no and then it allowed me to input the taxable amount Then I went to forms and did a revised 1099 form with an explanation. Hope this was the right way to do it, but for those of you looking for the same answer, this is how I did it because no one answered.