We got a 1099R for an IRA distrib. These funds were ultimately rolled to another trad IRA. Does it count as income?

[hartski1]

When received the distribution check, it said funds wre distributed to Charles Schwab Bank.  They were ultimately rolled into another Traditional IRA.  Should this still count as income on our taxes?  

[DanaB27]

No, this isn't taxable income.

If your Form 1099-R has code G in box 7 follow these steps:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Enter the information from your 1099-R
4. On the "Did you move the money to a Roth IRA?" screen answer "No"

If your Form 1099-R has a different code in box 7:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount),it should show $0 and state ROLLOVER next to it.

To preview Form 1040:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left