I did not deposit a retirement rollover check. I need to report this check as income and pay the 10% penalty and income tax. how can i access form 5329?

[blues707]

I received a 1099-R and have entered it into turbotax, but the software does not ask if that rollover check was actually deposited. How can I indicate that this money is taxable and pay the 10% penalty as well?

[FangxiaL]

When you enter the 1099-R form, on one of the screens TurboTax will ask you if you rolled over the money.  The last choice will be best for your situation. See the screenshot below.

Enter the 1099-R you received for this distribution. The penalty will be calculated based on your age and the distribution code on the form. You don't enter anything directly on Form 5329. That form will be generated based on the information you entered in TurboTax. 

[blues707]

Hi i wish this question was asked, but it was not.  I have walked through this live with multiple agents.  I am not asked this question. 

[blues707]

After entering a 1099-r these are the screens I see. 

[DanaB27]

What was the code in box 7 of your Form 1099-R? It seems that you have code G in box 7 and this indicates a direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.

If you just cashed the check then you will have to contact the issuer of Form 1099-R and inform them they made a mistake.

Please see How do I file an IRS extension (Form 4868) if needed.

[blues707]

You are right, box 7 says, "G", but I don't believe that is a mistake of the 1099 issuer? This was supposed to be a direct rollover, but I deposited it, so I need to pay a the penalty and have it taxed. There isn't a way for them to know beforehand that this wasn't going to be done. Thanks in advance for your help. Shouldn't there be a way for me to indicate that this is taxable/wasn't deposited?

[blues707]

*was not deposted into an ira. 

[PattiF]

Contact the payer to have a corrected Form 1099-R issued. Tell them what happened with the check. Don't change the distribution code on your 1099-R when you're entering it into TurboTax.  If the code that you enter for the 1099-R doesn’t match what the IRS has on record for the same 1099-R, this will raise a red flag with the IRS.

At this point, you can file for an extension which will allow an extension of six months to file your return. 

Or you can file your return and add the corrected 1099-R in an amended return when you received the corrected form.