I received a 1099-R as a result of a withdraw and 100% rollover of an IRA. When I enter the 1099-R data from the form, Turbotax thinks I need to pay taxes?

[TeresaM]

What code is listed in Box 7 of the Form 1099-R?

If it is a Code 7, that is a normal distribution and would be showing as taxable. 
If  it is a Code G, that is for a Direct rollover and direct payment and would not show as taxable. 

Is there any amount listed in Box 2a?  That is used to track taxable amounts. 

If you have an amount in Box 2a and Box 7 is Code 7, you may need to ask the plan administrator for a corrected form. 

 

[VolvoGirl]

What code is in box 7?  After you enter the 1099R keep going.  It should ask you what you did with the money.  Say you moved it to another account even if you put it back into the same account.  Were there any taxes withheld in box 4?

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. 

[Kimberly-D-]

Hello TeresaM,

First, thank you for your prompt response!!!  Turbotax Community is the Best!

In Box 7, the code listed is 1. 

Box 2a lists $0.00 and the "IRA/SEP/SIMPLE" box is checked.

When I enter the information from this form into Turbotax, it shows me that I will owe state tax.  Which I know is incorrect, as I did a 100% rollover into another financial institution within the allowed amount of time. 

What do I do?

[Kimberly-D-]

Hi VolvoGirl,

The code in Box 7 is 1. 

If I enter the data from the form exactly, I do not get an option to state what I did with the withdraw.  It just gets to a place that tells me I will owe tax and 'State Refund' at the top of the page goes to a negative number (what I owe).  Which I know I don't as I did a 100% rollover to another financial institution. 

Now what?

[emikosan]

I have the same question and I didn't think I should open another chat.  I rolled a 401(k) from one company to a different company, so the original company cut a check and sent it to the new company and it was put into an IRA.  After entering in the info from the 1099-R, I'm asked if the money was rolled over to a Roth-IRA (it wasn't) or a Roth 401(k) or 403(b) (it wasn't).  On the "Here's a picture of your 2022 income" page, it shows up there, even though I never physically received any funds.  That's where I'm thrown off since my distribution code is 'G'.  Why would it show as part of my 2022 income?  I think I'm reading into the page more than I should, but just wanted clarification.

[VolvoGirl]

@emikosan   Code G is a direct transfer and not taxable.  Check your actual 1040 line 5.  5b should be zero for the taxable amount and say Rollover by it.

 If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. 

[TeresaM]

With a Code 1 in Box 7 of the Form 1099-R, it is considered an early withdrawal and I have this screen coming up next.  I would recommend to contact the administrator for the plan that issued the Form 1099-R and ask for a corrected form. 



With a Code G in Box 7 of the Form 1099-R, even with an entry on the screen titled Review your 1099-R info, it does not mean that number is taxable, even if it was included in Box 1. To be sure, you can Preview your Form 1040 and check that it is not included as income. 
 

You can preview the information on your 1040 form by clicking on Tax Tools, on the left

• Select Tools 
• Then select View Tax Summary, first on the list under Helpful Links.  This will show basic information about the return.
• In the upper left-hand area, in the menu, click on Preview My 1040
• This will show a picture of the information on the tax form and there is a vertical scroll bar on the right-hand side, to scroll down the return. 
• Scroll down to Line 4a IRA distributions and 4b Taxable amount and 5a and 5b to see if it is being included as taxable income. 

 
@Kimberly-D-
@emikosan