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Level 4
posted Feb 13, 2023 9:48:43 AM

Form 1099-R box 3 Capital Gain - how to report the amount in that box

My mother passed away in 2022.  She was born Feb of 1933 and I received a 1099-R from here retirement account under my Social Security#. I went through the process of answering the questions through TurboTax but I am still not sure.  Here are the lines from 1099-R.  I did not reinvest the money, I took the money out.

 

Box 1: $3578.00 (gross)

Box 2a: $2933.70 (taxable)

Box 3: $272.91 (Capital Gains)

Box 4: $587 (Fed W/H)

Box 5: $644.30 (employee contrib/design roth/Insurance

Box 7: 4A

 

Nothing appears on the Capital Gains on Form 1040 and nothing indicates if I qualify for the 10 year tax option.  Do I have to manually enter box 3 $273.00 Capital Gains on Schedule D, if so which line would I transfer this number to.

 

Thank you in advance for your assistance. 

0 2 1136
1 Best answer
Expert Alumni
Feb 13, 2023 10:47:23 AM

No, the capital gain amount is included in the gross distribution.  Therefore, you will not be separately entering the capital gain amount on your Schedule D.   The gross amount of $3,578 should appear on your Form 1040, line 5a; however, the taxable amount of $2,933 should appear on line 5b.  The withholding amount of $587 should appear on line 25b.  

 

If you are using TurboTax online, you can view your Form 1040 (before paying the TurboTax fee) by following these steps:

 

  1. Open or continue your return.
  2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
  3. With the Tax Tools menu open,
  4. Select Tools.
  5. Next, select View Tax Summary in the pop-up.
  6. Then Preview my 1040 in the left menu.
  7. To get back to the step-by-step instructions, just click Back in the left margin.

@taxesohmy2017

2 Replies
Expert Alumni
Feb 13, 2023 10:47:23 AM

No, the capital gain amount is included in the gross distribution.  Therefore, you will not be separately entering the capital gain amount on your Schedule D.   The gross amount of $3,578 should appear on your Form 1040, line 5a; however, the taxable amount of $2,933 should appear on line 5b.  The withholding amount of $587 should appear on line 25b.  

 

If you are using TurboTax online, you can view your Form 1040 (before paying the TurboTax fee) by following these steps:

 

  1. Open or continue your return.
  2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
  3. With the Tax Tools menu open,
  4. Select Tools.
  5. Next, select View Tax Summary in the pop-up.
  6. Then Preview my 1040 in the left menu.
  7. To get back to the step-by-step instructions, just click Back in the left margin.

@taxesohmy2017

Level 4
Feb 13, 2023 11:49:35 AM

thank you very much.  I had box 1 and box 2a appearing on the correct line on my Form 1040.  I read that box 3 Captial gain was included in box 2a, I just wasn't sure if additional entry was required.  Thank you again.  Enjoy the rest of your day.