The withdraws totaled approximately $42,000. The BOA 1099-R shows $25,079 distribution 0.00 taxable amount. The Merrill Lynch shows $25,005 with $6,083 Federal tax withheld. The second BOA 1099-R shows $16,698 distribution with $3,340 Federal tax withheld. If I enter all 3 into Turbo Tax it totals an income that is not correct and I owe additional state tax.
Do I just ignore the form from Merrill Lynch and not enter it since it shows 0.00 taxable ?
It is better to enter all three 1099-Rs because the IRS gets copies and might question the absence of one.
Since the 1099-R ($25,079) with the 0 taxable income has code G (rollover), it should not be included in either your federal or state taxable income.
If, for some odd reason, it is being included in state income then delete the 1099-R from the federal side. If the IRS sends you a letter just explain that it was a rollover and has no effect on the return.
If the rollover distribution is being included in your state income, please let me know what state so I can report the situation to our developers. Thanks!
What codes are showing in box 7 of each of the 1099-Rs? Also, what state?
It is better to enter all three 1099-Rs because the IRS gets copies and might question the absence of one.
Since the 1099-R ($25,079) with the 0 taxable income has code G (rollover), it should not be included in either your federal or state taxable income.
If, for some odd reason, it is being included in state income then delete the 1099-R from the federal side. If the IRS sends you a letter just explain that it was a rollover and has no effect on the return.
If the rollover distribution is being included in your state income, please let me know what state so I can report the situation to our developers. Thanks!