How to enter a 1099-R correctly. Got a distribution which was not taxable, only the interest paid on it. When I entered it, I got a tax amount that I was to pay.

[mayralice]

There was a gross distribution in Box 1, and a taxable amount in Box 2a, but it showed the amount in Box 1 as taxable.

[MiriamF · Accepted solution]

The only way to correct this problem is to get a corrected 1099-R.

If you received a 1099-R that reports that the full amount is taxable (Box 1 and Box 2a report the same amount), and this is not correct, then you will need to contact your account custodian to request a corrected 1099-R.

The IRS will believe what is printed on the 1099-R, and if you do not pay tax on the amount in Box 2a, you will get a letter from them.

If you are getting distributions from a traditional IRA, a pension or annuity that was paid for with after-tax dollars, then only the earnings would be taxable. If this is your situation, then please contact your account custodian. Make sure that you have documents to back up your after-tax contributions when you call, in case they need proof.