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I found your comment to an answer I gave a year ago indicating that your code H Form 1099-R has box 2b Taxable amount not determined marked. I forgot all about the fact that TurboTax will treat as taxable a code H Form 1099-R with that box marked and a blank box 2a. That's the cause of the symptom you are seeing. I'm glad to see that you stuck with it.
You have an improperly prepared Form 1099-R from the payer. A code H Form 1099-R is required to have a zero in box 2a and box 2b Taxable amount not determined NOT marked. It's odd that TurboTax treats a code H Form 1099-R with this error as taxable, but it seems to be such a rare occurrence that the payer makes this error that it hasn't raised the attention of the TurboTax Product Quality folks. I think it's unlikely that TurboTax's behavior with regard to this will change before the filing deadline since the problem has been in TurboTax for years.
As a workaround, simply enter a zero in box 2a. Since there is no tax withholding in box 4, the details of what you enter on TurboTax's 1099-R form are not included in the e-filing, so the fact that you entered a zero in box 2a will not be apparent to the IRS. What *will* be apparent to the IRS is that your tax return shows the distribution correctly as nontaxable.
I found your comment to an answer I gave a year ago indicating that your code H Form 1099-R has box 2b Taxable amount not determined marked. I forgot all about the fact that TurboTax will treat as taxable a code H Form 1099-R with that box marked and a blank box 2a. That's the cause of the symptom you are seeing. I'm glad to see that you stuck with it.
You have an improperly prepared Form 1099-R from the payer. A code H Form 1099-R is required to have a zero in box 2a and box 2b Taxable amount not determined NOT marked. It's odd that TurboTax treats a code H Form 1099-R with this error as taxable, but it seems to be such a rare occurrence that the payer makes this error that it hasn't raised the attention of the TurboTax Product Quality folks. I think it's unlikely that TurboTax's behavior with regard to this will change before the filing deadline since the problem has been in TurboTax for years.
As a workaround, simply enter a zero in box 2a. Since there is no tax withholding in box 4, the details of what you enter on TurboTax's 1099-R form are not included in the e-filing, so the fact that you entered a zero in box 2a will not be apparent to the IRS. What *will* be apparent to the IRS is that your tax return shows the distribution correctly as nontaxable.
Your 1099-R has been correctly coded in box 7. Code H means Direct rollover of a designated Roth account distribution to a Roth IRA. The rollover is not taxable. And by entering code H in box 7, TurboTax will not tax it (I have tested it).
Please revisit your form 1099-R and follow the interview to the end. If it still does not work, delete the form 1099-R and reenter it.
I have same issue with Roth 401k rollover to Roth IRA. H is checked in Box 7 but Box 2b indicated taxable amount not determined. The rollover is showing up as pension income on line 5b of 1040. When I uncheck box 2b and enter $0 in Box 2a Form 1040 5b goes to $0 . I would have assume the H in Box 7 would result in Turbotax not taxing.
A code H Form 1099-R must always have a zero in box 2a and box 2b Taxable amount not determined unmarked; direct rollovers from a designated Roth account in a qualified retirement plan like a 401(k) are always nontaxable and the payer should know that. Are you sure that the 2b box that is marked is not the Total distribution box?
Enter $0 in box 2a and it won't matter if you mark box 2b Taxable amount not determined or not.
My box 2a is blank. 2b is checked. Box 7 has code H. When I enter $0 in 2a and uncheck box 2b it all works as it should--1040 is updated with $0 income. I would have guess the H code would have overridden the blank 2a and show $0 income but it didnt
TurboTax is not particularly well behaved when faced with with Forms 1099-R that are prepared improperly.
Yep all worked.
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