Should line 2a amount be used on a 1099R that has box 7 "Distribution code" marked as code 4?

[avoswirth]

box 1 shows 28,000.00 Box 2a "taxable amount" shows 12000.00

[rjs]

Yes, the amount in box 2a of the 1099-R is the taxable amount. Just enter the information from the 1099-R into TurboTax as it appears on the form that you received.

[dmertz · Accepted solution]

Because the amount in box 2a is less than the amount in box 1, this is apparently a distribution that is not from an IRA; the IRA/SEP/SIMPLE box is not marked.  This means that the amount shown in box 1 must be included on line 5a of Form 1040 but only the amount shown in bx 2a is to be included on line 5b as taxable income.  TurboTax will do this when you enter the Form 1099-R as received.