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1099-Q Won't Allow Box 1, 2, & 3 Entry

When entering the dollar amounts into box 1, 2, and 3, TurboTax returns an error stating:
"Your box 1 gross distribution must equal the sum of box 2 earnings plus box 3 basis. Make any necessary corrections here."

The amounts I'm entering are:

9720.24

4316.97

5403.27

 

The math on my side and on the 1099-Q side appear to be fine, but the information is unable to be filed due to the error on the software.

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1 Reply
AmyC
Employee Tax Expert

1099-Q Won't Allow Box 1, 2, & 3 Entry

The answer is a rounding issue. You have options:

  • Easiest: Round to 9720, 4317, 5403
  • Easy: increase box 3 by one penny or decrease box 2 by one penny

IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.

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