Should I adjust interest which is included in gross distribution (1099-R)?

patelbhal · ‎March 26, 2020

SusanY1 · ‎March 26, 2020

No, you should report the item as it is shown on the form. Any interest included in the gross distribution from this type of account is a part of the ordinary income.

If some of the distribution is a return of your principal, this is usually accounted for in Box 2 but if it is not, you will have the option to enter information to adjust the taxable amount in the follow-up questions in TurboTax that will appear after you have completed all of your Form 1099-R entries.

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SusanY1 · ‎March 26, 2020

No, you should report the item as it is shown on the form. Any interest included in the gross distribution from this type of account is a part of the ordinary income.

If some of the distribution is a return of your principal, this is usually accounted for in Box 2 but if it is not, you will have the option to enter information to adjust the taxable amount in the follow-up questions in TurboTax that will appear after you have completed all of your Form 1099-R entries.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Should I adjust interest which is included in gross distribution (1099-R)?