I rolled over a 401k to an trad ira so my total income goes up?

[AnthonyC · Accepted solution]

Its technically considered income, which is why it shows up on the income summary pages in TurboTax.  But, it is NOT taxable income, so it does not affect your income numbers on the tax return (AGI and taxable income).

You can view the distinction best by looking directly at a copy of Form 1040.  Look at Line 16a and 16b and the distinction the IRS makes between the income and taxable income lines.  Only 16b - taxable income actually gets used in the calculations.  But, the whole rollover amount will show on Line 16a.

https://www.irs.gov/pub/irs-pdf/f1040.pdf 

[Edited 2.16.18 at 1:51PM]

[VolvoGirl]

Actually it will be on line 16a and should say ROLLOVER by 16b.

[AnthonyC]

Yes, thank you ... for this rollover it should be line 16 not 15