Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Ask the Experts about self-employment >> Event happening NOW!
cancel
Showing results for 
Search instead for 
Did you mean: 
tinvine0009
New Member

Why does TurboTax calculate retirement rollover (non taxable) as income? System says I have to pay back health ins discount. Please help. Thank you.

Since on health marketplace for 2 months we had to estimate income for 2020. So, didn’t estimate a retirement rollover due to job change.
1 Best answer

Accepted Solutions
macuser_22
Level 15

Why does TurboTax calculate retirement rollover (non taxable) as income? System says I have to pay back health ins discount. Please help. Thank you.

It will show as income on the summary screen which shows gross income, not taxable income.

The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.

The income will be reported on line 4a (or 4c) and 4b (or 4d) on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on the 1040 line 4b (or 4d). In the case of a rollover, nothing goes on 4b (or 4d).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

2 Replies
DJFuego81
Returning Member

Why does TurboTax calculate retirement rollover (non taxable) as income? System says I have to pay back health ins discount. Please help. Thank you.

This is support. Customer is requesting that this post be deleted at this time. @Moderator 

macuser_22
Level 15

Why does TurboTax calculate retirement rollover (non taxable) as income? System says I have to pay back health ins discount. Please help. Thank you.

It will show as income on the summary screen which shows gross income, not taxable income.

The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.

The income will be reported on line 4a (or 4c) and 4b (or 4d) on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on the 1040 line 4b (or 4d). In the case of a rollover, nothing goes on 4b (or 4d).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v