My spouse rolled her 401K to IRA then took a $ from the IRA. Do we need to report both 1099 R's? It's adding both to income but the rollover isn't taxable.

[JohnB5677]

Yes, you do have to post both 1099's, but they will be handled differently.  

• For the rollover, there will be a question Tell us if (You) moved the money through a rollover or conversion.
  • Select [I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)]
  • This will not be taxable.
• For the withdrawal, on the same screen:
  • Select [I didn't rollover or convert this money.]
  • This will be taxable.

You can confirm this with a preview of your tax return.

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. Schedules 1,2&3 are included if you scroll down past your 1040.
9. To return to the entry screens press Back on the sidebar.

See Boxes 4 a&b and 5 a&b for the posting of the retirement funds.

Some Other key numbers on your 1040 tax return are:

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 - Withholdings.

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.

If this does not completely answer your question, please contact us again and provide some additional details.
 

[dmertz]

The nontaxable income from the 401(k) must appear on Form 1040 line 5a but will be excluded from any taxable amount on line 5b.  The taxable income from the IRA distribution will be present on Form 1040 line 4b.