Mismatch between Turbotax determined taxable amount for my 1099-R form and that in the Form's Box 2a

[vuong1]

Hi, I'm puzzled by the mismatch. My 1099-R shows:

Box 1 (Gross distribution) = $8,323.14

Box 2a (Taxable amount) = $90.88

Box 5 (After-tax contribution) = $8,225.89

Box 7 (Distribution code(s)) = G

But Turbotax shows me the following table which shows a very different taxable amount i.e. $188.00:
==== Begin table ===

Retirement income results
Here is how your retirement and IRA distributions affect your income.

Pension and annuity distributions: Total $8,323.00 ; Taxable $188.00.

===== End table ===

I have only one 1099-R form in the return. Could you please help me on this?

Thanks!

[vuong1]

I wanted to add that the 1099-R form mentioned in the original message is for the rollover from After-Tax contribution to Roth IRA. Thanks.

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.

[vuong1]

Hi KeshaH,

Thanks for the reply. I just figured out Turbotax calculate the taxable amount of $188.0 by calculating (Box 1 - Box 5 + Box 2a), which is I think wrong. The taxable amount, I think, should be only the Box 2a amount. Could you or someone please give me some clarification? And if the taxable amount is indeed the Box 2a amount only, how to file the 1099 form the avoid the (Box 1 - Box 5 + Box 2a) calculation by Turbotax?

Thanks.

[VolvoGirl]

You need to post the token number here so they can look at it.  If the filter removes part of the number you can post a screenshot of it.   It will send them a diagnostic file with your personal info removed.  

[vuong1]

Hi VolvoGirl

It is 1295409.

Thanks.

[vuong1]

States: NY, NJ.

[vuong1]

Hi  KeshaH,

My token number is: 1295409. States = NY and NJ. 

Thanks.

[dmertz]

Box 1 (Gross distribution) = $8,323.14

Box 2a (Taxable amount) = $90.88

Box 5 (After-tax contribution) = $8,225.89

Box 7 (Distribution code(s)) = G

Those numbers on the 1099-R don't make sense.  On this sort of Form 1099-R the sum of box 2a and box 5 should equal box 1.  Compare the numbers entered into TurboTax with the values on the actual form provided by the payer.  If these are the actual numbers on the Form 1099-R provided by the payer, contact the payer to obtain a corrected Form 1099-R.

The fact that one or more of these numbers is wrong might be the reason that TurboTax appears to be adding the taxable amount determined by subtracting $8,225.89 from $8,323.14 to the amount from box 2a.  Garbage in, garbage out.

[vuong1]

Hi dmertz,

You're exactly right. I checked payment record and confirm the error in the 1099-R. As a test to Turbotax, I manually entered corrected amounts and it gives correct taxable amount. I'll contact the payer for corrected 1099-R.

Thanks!

[vuong1]

Hi Turbotax Expert,

What should I do in case a corrected 1099-R will not be issued before the tax return deadline? I have correct taxable, non-taxable, and gross amount in my account payment record. Can I manually enter the correct amounts in the tax return and send IRS the correct 1099-R form later? 

Thanks!

[dmertz]

I would request a filing extension and wait for the corrected Form 1099-R.

[vuong1]

Hi Turbotax expert,

I asked the tax payer why there is a difference of $6.37 between Box 1 and sum of Box 2a and Box 5 in my 1099-R form. The payer say the form is correct. Their explanation is that Box 5 is only for Roth contribution. The $6.37 is not included in the Box 5 because it as transferred to my Traditional IRA (Indeed, I confirmed that amount was transferred into my Traditional IRA). The explanation is reasonable to me.

The issue here is that it seems Turbotax is not able to accept or process this case where Box 1 and sum of Box 2a and Box 5 and thus calculated a wrong taxable amount of  $188.00, rather than accept the correct amount $90.88 in Box 2a. How should I file my tax return to make Turbotax understand this situation and accept the correct taxable amount as in Box 2a?

Thanks!

[dmertz · Accepted solution]

That does explain it.  You didn't previously mention that you had split the rollover between two destinations, so I had assumed that you did not since just rolling over the $6.37 to the Roth IRA (along with the other $90.88 of pre-tax funds that you rolled over to the Roth IRA) would have been far simpler without any significant tax consequence.

To accommodated TurboTax's limitations on dealing with a code-G From 1099-R that reports rollovers to the two different types of IRAs, you must split the Form 1099-R into two for entry into TurboTax.  The one for the rollover to the Roth IRA will have $8,316.77 in box 1, $90.88 in box 2a and $8,225.89 in box 5.  The one for the rollover to the traditional IRA will have $6.37 in box 1, $0 in box 2a and a blank box 5.

[vuong1]

Hi dmertz,

Thank you so much for the instruction on splitting the original 1099-R into two for entry into Turbotax. I'm going to e-file. So, how to attach the original 1099-R to the tax return? 

Thanks.