Should I fill in box 2a on my 1099-r? It is blank and total distribution is checked. It was an early withdrawal.

[MinhT1]

If box 2a of your form 1099-R is blank, leave it blank in TurboTax. Enter form 1099-R exactly in TurboTax, then continue the TurboTax interview after you complete entering form 1099-R.

TurboTax will calculate the tax and the early withdrawal penalty and include it in your tax liability.

[velexiraptor]

When I leave it blank and answer all the questions it doesn't calculate any fees or taxes at all. I have another one that had a taxable amount and taxes withheld and that one showed a 10% early withdrawal fine. But for this one it isn't showing anything. Just nervous that it isn't taking out any taxes.

[JotikaT2]

Review the code on your 1099-R, box 7.  If the distribution is either G or H, it may be a rollover.

I have attached the instructions which include the distribution codes on pages 16-17.  

Form 1099-R instructions

Hopefully, this helps to clarify any confusion.  

If you still have questions, I recommend you call the company that issued the 1099-R to determine why they left box 2 empty.

[kim-stalder21]

2a is blank on my form and turbo tax won’t let me submit it keeps asking for a correction.  I can’t put 0 or enter something that isn’t on the form.  I’m using the desktop version and it is up to date 

[ThomasM125]

@kim-stalder21 You should leave the box 2 entry blank if that is how it is reported on the form. I suggest you delete the 1099-R entry and re-enter it.

[kim-stalder21]

I have tried twice.  I get all the way to submitting and it won’t go through.  Says 2a must have a value even if it’s 0.

[BillM223]

Is the IRA box checked (after line 7)?

Is the taxable amount not determined checked (box 2b)?

What is the distribution code in line 7?

Is there another distribution code in the next box?

Is total distribution checked, like for the original question?

Remember that we in the Community cannot see your private tax data, so please help us help you.

[kim-stalder21]

Thanks for asking.  No 2a is blank, 2b is blank.  Distribution code is 4 - death.  Total withdrawal box is also blank even though it was a death benefit paid in full.  I have no other records since both parents are dead, so I would have to rely on the company to tell me.  I’m trying to get them to give me a new form but even if they had checked 2b (unknown) and total distribution turbo tax will not allow 2a to be blank even though all form instructions say it can be 

[kim-stalder21]

And yes iRA /SEM/SIMP box checked 

[BillM223]

Thanks for the info.

How did you answer "Did [name] inherit the IRA from [IRA name] distribution?"

If you answered "yes", did you answer that it was inherited from "someone else who passed away"?

If you said someone else, how did you answer the name and year of death?

And when was the original owner of the IRA born?

" get all the way to submitting and it won’t go through." Is this in the Final Review process? Which product are you using, Online or CD/download?

[macuser_22]

Your 1099-R is improper.   The payer should issue a corrected 1099-R.

  If the IRA/SEP/SIMPLE box is checked then box 2a MUST be the same as box 1 and box 2b (not determined) checked.

https://www.irs.gov/instructions/i1099r#idm140339525782928

Traditional, SEP, or SIMPLE IRA.

Generally, you are not required to compute the taxable amount of a traditional, SEP, or SIMPLE IRA nor designate whether any part of a distribution is a return of basis attributable to nondeductible contributions. Therefore, except as provided below or elsewhere in these instructions, report the total amount distributed from a traditional, SEP, or SIMPLE IRA in box 2a. This will be the same amount reported in box 1. Check the "Taxable amount not determined" box in box 2b.

[BillM223]

@dmertz

I have managed to build a test case that has the "Check this Entry" in the Review: Form 1099-R (IRA distribution) Taxable amount must have a value, even if it is zero". The user is asked to make an entry in box 2a.

Input for test case (note: not guaranteed to be identical to the poster's):

Box 1 has a gross distribution amount

Boxes 2a through 6 are empty

Box 7 has "4-Death"

IRA box is checked

All other boxes are empty

Did [name] inherit the IRA? - YES

The IRA was inherited from someone else who passed away

The person passed away in 2020

The IRA did not have any nondeductible IRA contributions (the poster admits that she has no idea, since it belonged to her parents)

Original owner was born after June 30, 1949

We would appreciate your insight.

[kim-stalder21]

Hi, thank you for your help.  Box 1 has gross amount.  2a, 2b and total distribution are blank, box 3 blank.  box 4 has the 10% I paid when I took the money out, the letter said sorry they died, sign this form, do you want takes taken out.  So box 4 and box 14 have 10% of box 1 paid federal and state.  I later learned state doesn't want it so I get that refund.  Since box 2a is blank, it is adding the whole amount to my income, making it quite heavily taxed.  Distribution code is 4 and the box IRA/SEP/Simple is checked.  nothing in box 10 or 11.  There's no box 12 or 13, box 14 as stated above is the state tax paid already, box 15 is their ID, and 17, 18, 19 are blank.  

I will be contacting the company to see if they have any information, he died in January 2020 so I said no to any RMDs being required for 2020.  I don't know if he made any after tax contributions, I have to ask the company.  Correct I said yes to he died, entered his first name, and 2020.  He was born before 1949, in 1945.  I was the only listed beneficiary, even if my Mom had not already passed away it would have come to me as a directed beneficiary payment.  He had a very basic will, no trust, no estate, we used a small estate affidavit to close out checking, etc.  No probate.

[macuser_22]

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@kim-stalder21 wrote:

Hi, thank you for your help.  Box 1 has gross amount.  2a, 2b and total distribution are blank, box 3 blank.  box 4 has the 10% I paid when I took the money out, the letter said sorry they died, sign this form, do you want takes taken out.  So box 4 and box 14 have 10% of box 1 paid federal and state.  I later learned state doesn't want it so I get that refund.  Since box 2a is blank, it is adding the whole amount to my income, making it quite heavily taxed.  Distribution code is 4 and the box IRA/SEP/Simple is checked.  nothing in box 10 or 11.  There's no box 12 or 13, box 14 as stated above is the state tax paid already, box 15 is their ID, and 17, 18, 19 are blank.  

I will be contacting the company to see if they have any information, he died in January 2020 so I said no to any RMDs being required for 2020.  I don't know if he made any after tax contributions, I have to ask the company.  Correct I said yes to he died, entered his first name, and 2020.  He was born before 1949, in 1945.  I was the only listed beneficiary, even if my Mom had not already passed away it would have come to me as a directed beneficiary payment.  He had a very basic will, no trust, no estate, we used a small estate affidavit to close out checking, etc.  No probate.

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As I said above, the 1099-R is not correct, but that will have no effect on the tax (TurboTax treats a blank box 2a as if it was the box 1 amount).   The entire box 1 amount will be taxable income unless the IRA owner had a "basis" in the IRA and you have the last filed 8606 form that the owner filed.   Lacking that, the box 1 is the taxable amount.

Any tax withheld in box 4 or 14 will be  credited to your tax return.