Two 1099-r's one code 7 'normal distribution' and one code N for recharacterization. TurboTax is still reporting the normal distribution as taxable income.

[dmertz]

Actually, if you enter it as a rollover instead of a conversion with recharacterization, TurboTax will include a ROLLOVER indication on line 15 that is not correct for the circumstances, so, while doing so would produce the correct taxable amount, it would not produce a correct tax return.

[dmertz]

Wait, in the follow-up, if you indicate that you recharacterized only part of the conversion, TurboTax asks you to enter the amount *not* recharacterized.  But if you indicated that the entire amount was recharacterized, TurboTax will consider the amount not recharacterized to be zero.

[RTW45459]

I tried this route too and entered $0 as the amount not recharacterized, I tried $1, there's a lot of 'calculating' going on, but the original 1099-r amount stays regardless of what I try.  I'll keep working on it: very frustrating when you 'know' what the answer is supposed to be, but can't get there.

[RTW45459]

There's something in this return that is 'telling' the system the recharacterization can't happen...it works in a 'new' return without transferring data from 'the past'....maybe I just start from scratch and forget importing the previous year.

[RTW45459]

That's the approach I took...started from scratch and it's handled the recharacterization the way I expected it to....now to enter everything else and see what it is that's screwing things up.

[dmertz]

The line 15 amounts should depend only on the 1099-R entries and your responses to any follow-up questions.  I can't think of a scenario where deleting all of the 1099-R forms in TurboTax an reentering them would not give the same line 15 results as starting from scratch.  After deleting the 1099-R forms, you might check to see if any 1099-R Summary page remains in TurboTax and, if so delete that too.  If you are using the online version, the Delete a form function can be reached by clicking Tax Tools -> Tools -> Delete a form.

[RTW45459]

Thanks...

[RTW45459]

To close this out.  I 'started from scratch' with a blank return and entered the 1099-r's first.  The program handled them as expected.  I then re-entered all of the other information without a problem.  I can't explain why it worked this way and not initially, but it did.  Thanks very much for the guidance.  I did try deleting all the forms and re-entering them in the original return: that did not 'work'...but starting from scratch did.  Odd, I agree with you, the result should have been the same.