1099-R Refund not added to 1040 line 4d

[tksprabu]

I received 1099-R for my wife's 401K plan. This refund is due to IRS Highly Compensated Employee rule, not something she initiated. 1099-R has same numbers in box 1 and box 2a (taxable amount), Box 7 Code 8. 

Turbotax 1099-R summary (desktop version) calculates the "Taxable amount transferred to Form 1040, line 4d" as 0.  I am not sure if this is correct.  The letter from the company clearly says the refund is taxable.

Any help appreciated. Thank you

[dmertz · Accepted solution]

This income is likely present on the 1099-R Summary line 28 instead of line 32d and is being included as taxable wages on Form 1040 line 1 instead of on line 5b.  (The reference to line 4d should actually be to line 5b.  The line number changed from 4d to 5b between 2019 and 2020.)

[tksprabu]

Do you mean it is already included in W2? Because the number on 1040 line 1 is same as W2. 

[dmertz]

It should be included on line 1 of Form 1040 in addition to the amount reported in box 1 of your W-2.  Check to see if this distribution appears anywhere on the 1099-R Summary.

[tksprabu]

Yes, it is added to 1040 line 1.  It is under " Wages, Salaries, & Tips Worksheet". Thank you.