TurboTax is taxing a non-taxable annuity

joolzwolf · ‎February 6, 2021

Help! This never happened before. It appears I'm entering everything correctly but when completing the form 1099-R for a MA State Board of Retirement non-taxable annuity, TurboTax is taxing it. What am I doing wrong? Thanks!

MarilynG1 · ‎February 9, 2021

Type '1099-r' in the Search area, then click on 'Jump to 1099-r'.

You may need to Delete/Re-Enter your 1099-R to get the correct screens to come up.

Make sure you did not check the the box for 'IRA' when entering your 1099-R. Pay close attention to the follow-up questions.

Form 1040 will show the entire Annuity amount on Line 5a, but the taxable amount is reported on Line 5b.

Click this link for more info on How to Enter a 1099-R.

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joolzwolf · ‎February 9, 2021

I did just that. Went back, cleared everything, re-entered the data and it worked this time. Oddly enough, I did this once before and it didn't work. Maybe there was a glitch and a software fix? In any event, it's no longer taxing the annuity. Thank you.

TurboTax is taxing a non-taxable annuity