Form 1099-R: Box 7b distribution code'L' is not appropriate

Forum|Forum|5 years ago
March 8, 2021
2 replies
14 views

During my run-check of my federal return, TurboTax program came back with a "Check This Entry".

I entered exactly what Box 7 had reported: "7L". I assume the 1st code = "7". And the 2nd code = "L".

Why is TurboTax not accepting this? And what do I need to do to correct this?

ColeenD3

Level 15

Double check all your entries. There may be another entry causing the review. I just ran it through with no problem. If the issue persists, delete the form and re-enter. The codes are also probably redundant. Code L is sufficient to indicate the loan.

dmertz

Level 15

This is a bug in TurboTax's error checking. TurboTax does not permit code L to be combined with code 7 even though it's permissible based on the instructions for Form 1099-R.

As ColeenD3 indicated, a reasonable workaround is to omit the code 7 and select only the code L. Code L has the same meaning and effect with or without the code 7.

wpaiz2021Author

Level 2

Thank you for this response. It makes more sense to me as well to eliminate the code "7" because code "L" says more clearly the "Loans treated as distribution".