Can you help me with my last 1099r form?

[zeppelinford]

I need help on my last 1099r entry.  It's taxing the whole $7500, and I already paid taxes on at least $7000 of it. My financial advisor is telling me I should only have to pay taxes on the gain part of it.  I don't know what to do to change the outcome.

[MichaelL1]

What code in in box 7?  What amount is in box 2a as taxable?  How did you pay taxes already in the $7K?

[zeppelinford]

J is in box 7  2a is blank and I paid taxes on it before it went in my 401k, and my financial person just moved it

[zeppelinford]

And 2b has an x by it

[zeppelinford]

I don’t see where to put that amount I only see the questions that it tells me to put that on my form

[MichaelL1]

right after the 1099R you will get a number of questions that follow and this is where you need to enter the $7K.  let me know what screens you see.

[MichaelL1 · Accepted solution]

OK, this is an early distribution from a Roth IRA.  TurboTax will ask after the 1099R what the contributions were to this plan, and your answer should be what they were (which you said is around that $7,000 number in the answer).

When this is answered that will tax only the earnings of approx. $500 in this case.

Go back and Edit the 1099R entry and look for this question, as it has a very big impact on your taxable amount.

To edit pension and annuity Payments (1099-R)

• Click on Federal Taxes
• Click on Wages and Income
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the update button