1099-R = 12,000, Box 15a 1040 = 12,000, IRS says that income was underreported at 10,500, Box 15b on 1040 was 10,500, where did the 10,500 come from I entered 12,000?

[jenndonahue]

The letter states Shown on Return 10,500, the corrected amount 12,000.  This is the amount I put in 15a on return, 12,000.  The amount on line 15b was 10,500, was this a mistake by turbo tax, how was this number calculated?  Am I responsible for adjusted tax amount?

[Critter]

Look at the form 1040 line 15 ... are there any letters in the margin like PSO ?

Look at the form 1099-R  box 2 a ... is there an amount ?  box 2b ... is that box marked?  What is the code in box 7?

[jenndonahue]

The amount in box 2 is 12000; it is marked taxable amount not determined; the code in box 7 is 1

[Critter]

Because it was marked not determined  you had to answer some questions in the 1099-R entry section to determine how much of the distribution was taxable ... the IRS assumes it is all taxable unless they get a form 8606 showing the basis.   Did your return include a form 8606?   Did you have any non deductible contributions to that IRA ?  If not then you may have entered the wrong information and that means the IRS is correct.



If you purchased Audit Defense for your tax return, call Tax Resources, Inc. at (877)-829-9695, or report your notice on their web site at <a rel="nofollow" target="_blank" href="http://intuit.taxaudit.com/">http://intuit.taxaudit.com/</a>. Do not contact the IRS. Let Tax Resources contact them for you.

This is the membership email you should have gotten:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901569-when-will-i-get-my-audit-defense-membership-kit">https://t...>
Also read the member agreement at this website -<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/corp/auditdefense.jsp">https://turbotax.intuit.com/corp/auditdefense.jsp...>

If you did not purchase Audit Defense:

TurboTax has a special phone number for help with IRS tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

<a rel="nofollow" target="_blank" href="https://support.turbotax.intuit.com/irs-notice/audit-support/">https://support.turbotax.intuit.com/i...>

Also see the following link on the IRS web site for more help.
<a rel="nofollow" target="_blank" href="http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter">http://www.irs.gov/Individua...>

[SweetieJean]

This is the amount I put in 15a 

It is best to enter the 1099-R via the Interview, in Federal taxes; Wages and Income; Retirement.  Line 15 is for IRA distributions. Is the IRA box checked on the 1099-R?