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Are you sure that you are being taxed on $16k? Both amounts are income under the tax code, but only the distribution from the IRA is taxable income since the distribution from the 401(k) was rolled over to the traditional IRA.
TurboTax's summary shows both taxable and nontaxable income. Examine Form 1040 lines 15b and 16b or Form 1040A lines 11b and 12b to see that only $8k is included in your taxable income.
Are you sure that you are being taxed on $16k? Both amounts are income under the tax code, but only the distribution from the IRA is taxable income since the distribution from the 401(k) was rolled over to the traditional IRA.
TurboTax's summary shows both taxable and nontaxable income. Examine Form 1040 lines 15b and 16b or Form 1040A lines 11b and 12b to see that only $8k is included in your taxable income.
The transfer from the 403b should be entered as a rollover.
You may have entered the wrong code on the 1099-R (for the 403b) screen. It's easy to overlook this question, but it's crucial.
Click Federal Taxes (top menu)
Click Wages & Income (just below top menu)
Scroll down to Retirement Plans and Social Security and click Show More (if necessary)
Edit/Revisit that 1099-R and in Box 7, enter the code from your 1099-R form.
Hopefully the code is G (direct rollover). If not, then take these additional steps:
At the What Did You Do with The Money screen indicate that I moved the money to an IRA or another retirement account and then select rolled over.
The net effect should be $8k added to your taxable income, and if you were under 59.5, an additional 10% early withdrawal tax.
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