I should have been more specfifc in my question line 1 gross distribution 2,206.94 line 2b taxable amount not determined total distribution checked. 7 distribution code H which is direct roth rollover. no other lines have anything marked. This is money that went from a roth 401k designated account to a roth IRA. there should be no tax on this amount. is the form wrong for some reason?
Double check boxes 2b. In 2b there are two boxes, Taxable amount not determined and Total distribution. Make sure that you have not marked Taxable amount not determined in TurboTax by mistake. It's likely that only the Total distribution box is marked on the Form 1099-R provided by the payer. Marking the Taxable amount not determined box in TurboTax when it is not marked on the original form will cause the reporting error that you are seeing.
Unfortunately, some payers mistakenly leave box 2a blank when it should contain a zero.
I should have been more specfifc in my question line 1 gross distribution 2,206.94 line 2b taxable amount not determined total distribution checked. 7 distribution code H which is direct roth rollover. no other lines have anything marked. This is money that went from a roth 401k designated account to a roth IRA. there should be no tax on this amount. is the form wrong for some reason?
I havnt filed yet but when I add the 1099-r the amount of tax I owe goes up.It should remain unchanged shouldnt it?
Yes it is wrong. Per the IRS instructions for a code H box 2a must be 0 (zero).
Contact the issuer for a corrected 1099-R.
"For a direct rollover of a distribution from a designated Roth account to a Roth IRA, enter the amount rolled over in box 1 and 0 (zero) in box 2a. Use Code H in box 7."
<a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1099r">https://www.irs.gov/instructions/i1099r</a>
Double check boxes 2b. In 2b there are two boxes, Taxable amount not determined and Total distribution. Make sure that you have not marked Taxable amount not determined in TurboTax by mistake. It's likely that only the Total distribution box is marked on the Form 1099-R provided by the payer. Marking the Taxable amount not determined box in TurboTax when it is not marked on the original form will cause the reporting error that you are seeing.
Unfortunately, some payers mistakenly leave box 2a blank when it should contain a zero.
I also have a 1099-R, that has box 2a as 0, 2b has only total distribution checked, box 5 has the exact same amount as box 1, box 7 is distribution code H, and box 11 has 2008. When all is transferred to TT, it increases my tax owed significantly. Can anybody see what the issues is? thanks
This answer saved me thousands of dollars. TurboTax still really needs to fix this issue with the 1099-R form!
FYI - my daughter received a form with both boxes in 2b checked. I unchecked the "tax not determined" box and left the total distribution box checked. This fixed the issue on her return.
It was a trustee to trustee rollover as well. Thank you for the discussion/answer.
Not sure why plan administrators make the mistake of marking box 2b Taxable amount not determined on a code-H Form 1099-R. Ignorance is not an acceptable reason for the administrator not to know that the taxable amount of a code-H distribution is always zero. The IRS instructions related to code H explicitly state to put a zero in box 2a, which means that the taxable amount is determined.