My box 7 entries for annuity distributions ("7 D") are not being recognized as "non-qualified distribution by my TurboTax app. What to do?

[DawnC]

You should not be getting that question.  Please try to delete the Form 1099-R entries and reenter it. If you are using TurboTax Online delete your cookies and clear you cache before entering the Form 1099-R again.

Please try the following workaround when you re-enter the form.  

Workaround for code 7D, omit the code 7 and enter only the code D.

[Carlin1]

Hi DawnC,

I have the same issue (but with 4D), and during a phone call with a TurboTax expert, she did not recommend omitting the "4" because the entry would differ from the 1099-R submitted to the IRS, and could trigger an audit.  I was told there was a fix in progress (I use the online version).

Thoughts?

Thanks!

Carlin

[Carlin1]

Hi DawnC,

Any updates on Turbotax correcting this software error?

Thanks,

Carlin

[DoninGA]

@Carlin1 Software updates were on 03/20/2025 which should have corrected the problem

Just did a test 1099-R using the online editions with code 7D in box 7 and indicate it was for a Non-Qualified Plan.  Completed entry with no errors.  

[Carlin1]

Thanks DoninGA!