How do you fix an error by TurboTax in IRA distribution taxable amount?

[macuser_22]

What error?   The taxable amount is determined by the entries on the 1099-R form and how you answer the interview questions.

[CatinaT1]

To edit this information, follow these steps:

1. Sign into your TurboTax account
2. Click on Search in the upper right corner next to the magnifying glass
3. Type 1099R
4. Click the Jump To link in the search results
5. Click Edit 

[hanaleicook]

Turbo Tax IS in error.  I completed a substitute 1099-R (form 4852) to put the correct taxable amount on our IRA distribution. It's been rolled over several times and the current institution is unable to correct it because they have no record of our after-tax contributions.  But we do.  On the 1040-SR line 4a is blank, line 4b says Taxable Amount and is the GROSS DISTRIBUTION - not the revised taxable amount I entered on the 4852.  Under the line 4b is the word ROLLOVER.  I have no way to correct it.  Can you help?

[macuser_22]

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@hanaleicook wrote:

Turbo Tax IS in error.  I completed a substitute 1099-R (form 4852) to put the correct taxable amount on our IRA distribution. It's been rolled over several times and the current institution is unable to correct it because they have no record of our after-tax contributions.  But we do.  On the 1040-SR line 4a is blank, line 4b says Taxable Amount and is the GROSS DISTRIBUTION - not the revised taxable amount I entered on the 4852.  Under the line 4b is the word ROLLOVER.  I have no way to correct it.  Can you help?

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Is is a rollover or did you take the money?    

What code is in box 7?

Is the IRA/SEP/SIMPLE box checked?

Is the box 2b (not determined checked)?

You are probably entering incorrectly.    A 4852 is not necessary or appropriate.

Assuming that this a a Traditional IRA distribution that has a after-tax basis, then you must enter that in the interview so that the correct taxable amount can be determined on a 8606 form.    

If the after-tax basis came from a employer plan rollover the  you enter it in the same place as prior years non-deductible (after-tax contributions).

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019.  Also enter any after-tax basis from employer plan rollovers not previously reported on a 8606 form

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

NOTE: If there is an * next to line 15 then 6-15 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead.

[larryr777]

I also have a problem with TurboTax using a wrong IRA distribution taxable amount.  I double checked that 1099-Rs entered into TurboTax have the right info, but their taxable amounts don't add up to what shown in 1040/4b.  

[macuser_22]

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@larryr777 wrote:

I also have a problem with TurboTax using a wrong IRA distribution taxable amount.  I double checked that 1099-Rs entered into TurboTax have the right info, but their taxable amounts don't add up to what shown in 1040/4b.  

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What does not "add up"?     Do you mean line 4b is more than to totals of the 1099-R's box 2b?

[larryr77]

Although the distributions from my 3 1099-Rs do add up properly on 1040/4a, the amount shown in 4b (I.e.,. the taxable amount) is significantly less than the summed amount from my 1099-Rs.  

[VolvoGirl]

I would delete all the 1099R and re enter them.  You might have answered a question wrong.  Is box 2a filled out for taxable amount?  It is very possible for the taxable amount to be less than the gross.

[macuser_22]

There are many circumstances that 4b can be less then 4a depending on the 1099-R box 7 code, whether it is a Roth distribution, if you have an after-tax "basis" in the account andoif box 2a on the 1099-R is less than box 1.

[MtnTABS]

1.  On my Form 1040-SR, Box 4a is empty but Box 4b has the taxable amount of my IRA distributions. Shouldn’t there be an amount in Box 4a?

2.  Also, on Page 2 of my 1040-SR, there is an amount in Box 12a and the same amount in Box 12b but there is no Schedule 2 or any other worksheet to explain where TurboTax came up with the amount in 12a/12b. [See next question.]

3.  On Page 2 of Schedule D, Line 16 has an amount. Line 17 is marked “Yes”. Lines 18 and 19 are blank. Line 20 is marked “Yes”. It says to complete Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040-SR, Line 12a. I printed out my whole return but I do not find this worksheet. Does it have an Attachment Sequence No.? Obviously my questions 1 and 2 are related because they both deal with Line 12a but I’m afraid to send in my return if there is a Worksheet or Schedule 2 missing. 

Thank you so much for your help. My husband always did our taxes on TurboTax software but he passed away in February so it’s my first time. 

[macuser_22]

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@MtnTABS wrote:

1.  On my Form 1040-SR, Box 4a is empty but Box 4b has the taxable amount of my IRA distributions. Shouldn’t there be an amount in Box 4a?

2.  Also, on Page 2 of my 1040-SR, there is an amount in Box 12a and the same amount in Box 12b but there is no Schedule 2 or any other worksheet to explain where TurboTax came up with the amount in 12a/12b. [See next question.]

3.  On Page 2 of Schedule D, Line 16 has an amount. Line 17 is marked “Yes”. Lines 18 and 19 are blank. Line 20 is marked “Yes”. It says to complete Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040-SR, Line 12a. I printed out my whole return but I do not find this worksheet. Does it have an Attachment Sequence No.? Obviously my questions 1 and 2 are related because they both deal with Line 12a but I’m afraid to send in my return if there is a Worksheet or Schedule 2 missing. 

Thank you so much for your help. My husband always did our taxes on TurboTax software but he passed away in February so it’s my first time. 

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#1)   The 1040 instructions say that if the 1099-R taxable amount is the same as the box 1 amount to place that on line 4b and leave 4a blank.

#2) 12a is the tax that is calculated in the line 11b amount.   12b is 12a plus schedule 2.   If no schedule 2 then 12a/b will be the same amount.

#3)   You need to print all forms and worksheets to see that.   It is not part of the tax return.

[MtnTABS]

Thank you for putting my mind at ease. My return was ready to mail so I will do that today. ❤️