I did a direct rollover of an IRA in 2018. When I enter the information from the 1099-R, it raises my tax due amount.

[jmcalafactor]

My household income was substantially lower this year
 but, because of the rollover, the software is showing that I earned substantially more. Should I also show the rollover as a contribution ?

[macuser_22]

What code is in box 7 on the 1099-R?

[jmcalafactor]

Also, Box 2a shows the "Taxable Amount" as $0.00

[macuser_22 · Accepted solution]

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)

A 1099-R with code "G" is automatically a non-taxable rollover and will not affect the tax.   It will show as income on the income summary that lists all income, taxable or not.

If it is adding to taxable income, then delete the 1099-R and re-enter.

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.]