I have a 1099R that shows a Gross distribution amount but this is a rollover so no tax is payed How do I fix this so it does not show a large income.

[coppaul]

The 1099R adds Gross Distribution as income even though it is a rollover with no tax payed. Turbotax keeps adding it as income.

[IsabellaG]

What is the distribution code on your 1099-R? If the code in Box 7 is not G (for direct rollover), continue after you enter the 1099-R.

When you reach the screen What did you do with the money from this payer? check that you moved the money to another retirement account or returned it to the same account.

Then check that you rolled over all of the distribution, and you won't be taxed on it.

[hennie123456]

Even though I’m not being taxed my income is higher and it’s being counted as a withdrawal.

[dmertz]

All amounts shown in box 1 of a Form 1099-R are considered to be income.  In the case of a nontaxable rollover, it is not taxable income.  Even though it is not taxable income, it must be reported on your tax return to tell the IRS that you rolled the money over to another retirement account.  The nontaxable income has no effect on the amount of your refund or your taxes due.

"Even though I’m not being taxed my income is higher and it’s being counted as a withdrawal."

As it should be.  The amount of income included on your tax return is higher, but your AGI remains unchanged.  Because your AGI remains unchanged, there are no side effects of including nontaxable income on your tax return.

[hennie123456]

Thank you for information.  That really sucks.  It looks like I made more money and I didn’t.  I was laid off and had to move the money with my new company.