When I add my 1099-R, TT adjusts my total (as well as taxable) income by 150% of the roll-over amount.
My 1099-R is showing a "G" in Box 7 and boxes 1 and 2a are identical values; i.e. the roll-over should be taxable but at my regular tax rate and not penalized by 50%. The roll-over was from an employer-sponsored 401(k) to a Roth IRA that I opened myself.
Where do you see a 50% penalty?
Enter a 1099-R here:
The follow-up questions will ask if it was rolled to a 401(k) Roth - say no, then if it was rolled to a Roth IRA - say yes. The box 2a amount should be on line 16b on the 1040 for (12b on a 1040A).
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
I'll try your other suggested steps and report back.
The income will be reported on line 16a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.
The taxable amount will go on line 16b. In the case of a rollover, that amount will be zero. For a Roth conversion 16b should be the box 2a amount
Lines 12a/b if 1040A form.
If you have more than one 1099-R then the summary screen will show the box 1 total of all forms.
If so then the 1099-R box 1 for the rollover to a Traditional IRA would be on line 16a with the word ROLLOVER and the 1099-R for the Traditional IRA to Roth conversion on line 15b..
The summary screen would show the box 1 totals from both 1099-R forms.
When I "Preview My 1040" in the My Account>Tools>View Tax Summary, the "ROLLOVER" properly shows up on line 16b as suggested by @macuser_22. I have a schedule E (rental income), which shows a value of -10k on line 17.
When I then remove the 1099-R completely from TT, the "ROLLOVER" and value on line 16b disappear, as expected. However, Schedule E shows a value of -18k.
So adding the rollover together with the change in Schedule E accounts for the difference in total income as well as adjusted gross income.
Nonetheless, it is still unclear to me how Schedule E would change based on the addition of a Rollover...