TurboTax Deluxe 2020 is in error 1099-R Pension income shows on return as IRA distribution

[tmhanes]

Please fix turbotax 2020

[DaveF1006]

Check your entries to make sure you did not check the box that says IRA/SIMPLE/SEP box is checked.  This is located between  Box 7 and 8 in your program.

[VolvoGirl]

What is wrong with it?  Did it show up on 1040 line 4 instead of 5?  Or why do you think it's showing as IRA? 

[tmhanes]

My pension (Via 1099-R) shows up on lines 3a and 3b (3a Qualified dividends . . 3a b Ordinary dividends) 

My wife's pension (also 1099-R) shows up on 4b.  4a IRA distributions . . . 4a b Taxable amount . . 4b

Very confusing, I would expect the two pension amounts to be the sum of mine and my wife's.

Thanks for any clarification you can provide.

[VolvoGirl]

Did you enter your 1099R in the wrong place?  Go back and delete it and enter it like your wife's.   Except your wife's pension should be on line 5 not line 4.  There is a little IRA checkbox between boxes 7&8 on the 1099R.  It should not be checked.  Go back and make sure it is not checked on the screen.   I would also delete her 1099R and re enter it.

@dmertz  any reason a 1099R would be on line 3 Dividends?

[VolvoGirl]

Just made you a screen shot for why it's showing up on line 4 as an IRA.  Do not check the IRA box.

[dmertz]

No.  Amounts on lines 3a and 3b come from the entry of Forms 1099-DIV, not from the entry of Forms 1099-R.

Delete the Form 1099 in question and reenter it manually.

[tmhanes]

I have found what I believe is an ERROR in TurboTax Deluxe for tax year 2020.

I originally opened a question regarding why my wife's Pension amount was being listed as an IRA distribution.

As suggested by some fellow forum experts, I checked my input of 1099-R for my wife's pension and found the 

IRA/SEP/SIMPLE box was checked, which caused the error in pension handling. I was absolutely sure I had NOT checked the IRA/SEP/SIMPLE box.

I made some other adjustments to my return later and the IRA/SEP/SIMPLE box was checked again BY TURBOTAX not by me. So TurboTax Deluxe infact has a BUG relating checking the  IRA/SEP/SIMPLE box.

I don't know the formal process for reporting programming errors in TurboTax Deluxe but there is a bug for sure.

Timothy M Hanes

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