Surviving spouse 1099-R Box7 has two codes 7and 4. Turbo help adv enter 1 code in box 1 and 2 code in box 2. However I get warning that 7 code is invalid. how 2 resolve?

[dmertz]

I assume that these are on a single Form 1099-R, not two separate Forms 1099-R, one with code 7 and the other with code 4.  The IRS does not permit code 7 to be paired with code 4.

It's not clear what the payer is trying to indicate by using both codes on a single Form 1099-R.  Code 4 indicates a distribution made to the beneficiary of the account owner.  Code 7 indicates a distribution made to the account owner.  If, as you are permitted to do with an IRA, you chose to treat your deceased spouse's account as your own, any distributions made to you before you made that choice should be reported on a code 4 Form 1099-R.  Any distributions made to you after choosing to treat the account as your own should have been reported on a separate code 7 Form 1099-R.

You should contact the payer to obtain a corrected Form 1099-R (and perhaps a second Form 1099-R).

[russtibbles]

Dmertz thank you very much. I ended up separating the codes out in the rollover section so live spouse 1099R has 2 entries.  Deceased has 1.  is this correct to do this way

[dmertz]

It's still not clear to me if there is one Form 1099-R with both codes 7 and 4 or multiple Forms 1099-R, each with only code 7 or code 4.

Each Form 1099-R must be entered separately.  On a joint tax return, you must associate each Form 1099-R with the correct individual, the one whose name and SSN are on the Form 1099-R.

[russtibbles]

my apologies - 1-1099R for surviv spouse (3 copies of same) - 2 distrib lines for box 7 - one as 7 and one as 4. Deceased spouse- 1-1099R  (3 copies of same) - 1 Distrib line - box 7 as 7. Problem is 1040A is showing box 11b as 5100 tax amt when I believe it to be 15,272.  I cannot determine what to change in turbo app to correct this. appreciate ur patience and info. I have asked for brief call at 230p today if easier.

[dmertz]

Ah, I think I see.  It sounds to me as though each distribution line represents a separate Form 1099-R which must be entered into TurboTax as a separate From 1099-R, two Forms 1099-R for the surviving spouse, one with code 7 for a distribution to the surviving spouse as owner, and a second one for a distribution to the surviving spouse as beneficiary of the deceased's spouse's account.  The other page with one line showing code 7 represents a distribution to the deceased spouse prior to death.

Any of these lines that have the IRA/SEP/SIMPLE box (or column, perhaps) marked is a distribution from a traditional IRA and should appear on Form 1040A line 11, with the taxable amount on line 11b.  If any of these do not have the IRA/SEP/SIMPLE box marked, it represents a distribution from a retirement account other than an IRA and should appear on Form 1040A line 12 with the taxable amount on line 12b.

If less than the expected amount is appearing on Form 1040A line 11b, check to see if a Form 8606 is being generated to calculate the taxable amount of a traditonal IRA distribution when the account owner has made nondeductible contributions to their traditional IRA.

Note that this is a public forum and much of the help comes from other users like myself.

[russtibbles]

Thank you very much.  This info was helpful.