To whom it may concern:
My Dec 2020 Covid related 401K Full Distribution Request came back to me in 3 payments, resulting in 3 Form 1099-R at year end
First payment was for $35,558.21: all this is taxable
2nd payment was for $35, 046.06: only $4,672.60 of it is taxable and $30,373.46 non
-taxable (Roth Contribution)
3rd payment was for $803.65, all taxable
When i enter the 2nd payment in Turbo Tax, with line 2a, taxable amount stating clearly $4,672.60 it charges me tax for the full $35,046.06; when i swap line 1 Gross Distribution of $35, 046.06 to $4,672.60, the tax decreases: how to make it charge tax to just the taxable amount 2a? thank you
Please enter all 1099-R's as shown on the forms. After you entered all 1099-R and you are on the "Your 1099-R entries" click "continue" and you should get questions about your Roth contributions.
If not then please provide me with the code in box 7. Are any other entries in other boxes?
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thank you very much for your reply: it worked! it applied tax to just the taxable amount in box 2a, instead of the whole gross distribution in box 1, so i am thrilled!
I still have to finish, fine comb review all my entries (complicate this year due to Covid related situations) but i got past that hurdle so thank you very much!:):):)
In online TurboTax a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only the code 1, 2 or 7 (if box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.
If this is not the way that you entered this, it probably is not reported correctly on Form 8915-E.