The 1099-R that I received indicates a taxable amount for the gross distribution. This amount was rolled into a new IRA. If this taxable amount is included I am charged with a tax bill. How do I enter this 1099-R without showing the taxable amount that is reported?.
Yes, you would report the 1099-R. Whether or not it becomes taxable income on your return is based on the code that is reported in box 7. If the code is box 7 of the 1099-R is a "G" then it will be considered a rollover and will not be be taxed.
However, The rollover is included in your total income, but it is not considered taxable income. The IRS requires that all distributions must be reported on your tax return. However, that does not mean that it is being taxed or that it affects your tax in any way. The screen shows all income both taxable and non-taxable. The distribution will show on your tax return with the word ROLLOVER next to it. You have to check the actual 1040 return. Line 16b is the taxable amount and it should say ROLLOVER by 16b (1040A line 12b). TurboTax will include the entire distribution on Form 1040 line 16a or Form 1040A line 12a but exclude the amount rolled over from the amount shown on line 16b or 12b.