2/26/21
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?
Hello DanaB27,
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.