1099R Issues

[immunis]

I have 2 1099R forms for a rollover of a retirement account.  Both show a taxable amount of $0.00.  One shows G and one shows H for the type of distribution.  Both should be non-taxable but TurboTax is listing it as income.  Is this a bug (and if so any idea when it will be fixed)?  I've put everything in just as it is on the forms and I've verified it was a non-taxable rollover.  I need to get this figured out since adding it to my income is giving me a large amount owed and should not be.

[JohnR6]

Since I know and can prove the money was never issued to me and the check was written to my investment company, I am thinking of deleting this entry altogether.

[immunis]

That's what I may have to do.  Would prefer TurboTax would just fix the glitch.  That error is the difference between me owing $1,900 and getting a refund.

[Rich_Smol]

I have received a 1099-R distrubition from my old 401K that I rolled over into my traditional IRA. For some reason Turbo Tax is adding it my income.  

[dmertz · Accepted solution]

JohnR6 has provided an incorrect suggestion.

These Forms 1099-R are required to be reported on your tax return.  You must not remove them.

These distributions constitute income under the law, but they are not taxable income.  Confirm proper reporting by seeing that the gross amounts of both are included on Form 1040 line 4c but both are excluded from the taxable amount on line 4d and that the word ROLLOVER is shown next to line 4d.  Anything other than that and the IRS will likely question your tax return.

[jimakin11]

I had same problem. My IRA sent me a distribution when we don't have to take distribution because of Covid. I requested they take it back as a rollover which they did. Then they sent me a 1099R which showed the distribution and a form 5498 which showed the amount returned and as a rollover.  The walk thru of 1099Rs ask if this was a rollover which I check Yes. However, the rollover amount does not show up on the 1099R Summery work sheet and the distribution amount showed up as taxable income on Line 5a of my 1040-SR. This is a bug in their system.  To fix this I went to the 1099R Summary work sheet and manually entered the rollover amount in line 1a which then created a 0 Balance of gross distributions in line 2 and 0 Taxable in Line 20a