Tax Year 2020 - I have a 1099-R for IRA rollover when I fill out on 2020 TT Deluxe and check box IRA/SEP/SIMPLE (which is checked) it results in taxes. I do not have a drop down box.

[hellob4]

This edition has no screen that says what you did with the money
It asks other questions irrelevant to just rolling it over to a 403B etc

[JoannaB2]

Yes.  The rollover retirement statement  should not generate a tax. You may check the1099-R form if the Distribution code on line 7 of the form is G for rollover. If not, you may contact the pension plan provider to correct the code, if it was a rollover.  A Rollover allows you to move funds from your retirement account or employer sponsored retirement into an IRA, either by trustee to trustee transfer, direct rollover, or a 60-day rollover.  When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. By rolling over, you’re saving for your future and your money continues to grow tax-deferred.

[hellob4]

Thank you but it was a 403B transferred from one institution to Vanguard which put in traditional 401 account and then transferred it out to their 403b. It looks like the internal transfer at Vanguard generated 1099-R. Box 7 is a code of G but the IRA/SEP/SIMPLE is checked and that box checking it in TurboTax generates the tax. Vanguard said a drop down box should occur asking what was done and I should check it was rolled over. On the old TT there is a drop down box not on my 2020 TT anymore tho

[dmertz]

The code-G Form 1099-R with the IRA/SEP/SIMPLE box marked indicates that the money from the original 403(b) was rolled over put into a traditional IRA (a rollover IRA), not a traditional 401(k).  The traditional IRA was subsequently rolled over to the new 403(b) and that's what this Form 1099-R from Vanguard is reporting.  This Form 1099-R must have a zero in box 2a.  You must indicate that the distribution was not rolled over to any kind of Roth account.  The gross amount from this Form 1099-R should appear on Form 1040 line 4a but be excluded from the taxable amount on line 4b.  The word ROLLOVER should appear next to line 4b.  Such a rollover is required to appear on your tax return in this way.

If also done in 2020, the rollover from the original 403(b) to the traditional IRA would have been reported on a different Form 1099-R with code G and the IRA/SEP/SIMPLE box not marked and should have a zero in box 2a.  The gross amount of this distribution should appear on Form 1040 line 5a but be excluded from the taxable amount on line 5b, with the word ROLLOVER next to line 5b.

[hellob4]

I do not know who is replying to this but there is no box 4a or 4b - I did everything properly. Everything is 0. There should be no tax. Vanguard and IRS says the same. It appears to be a software issue as if you uncheck the box on TurboTax that says IRA/SEP/SIMPLE then no taxes are taken out. If you check it taxes are deducted on TurboTax. According to IRS and Vanguard checking this box should have no impact on taxes. Also this does not happen on H&R Block. So it seems to me to be a flaw. I have contacted Intuit numerous times but no response - seems like they don’t care

[cishii11]

I have input 1099-R info and have input money on line 1 and 2 and check box 2b taxable amount not to be determined.  Also in 7. input 7 and check IRA/sep/simple yet the amount I input does not create income to be taxed in Turbo Tax.  i get a message that indicates that I need to contact my provider to correct my 1099-R.  I am confused what needs to be corrected

[dmertz]

@cishii11 , I suggest deleting an reentering this From 1099-R because the message implies that you did not actually enter the Form 1099-R as you described.