topic 1099-R / income question see below: in Retirement tax questions

1099-R / income question see below:

Evanessa — Sat, 01 Jun 2019 20:09:38 GMT

I have three 1099-R forms. Two are from 2 separate profit sharing/401k accounts. Those were rolled into a new Traditional IRA for 5 seconds, then into my existing Roth IRA. The third 1099-R is from that new Traditional account and is the sum of the 2 ps/401k accounts. Turbotax is calculating that duplicate amount as "new money" income when it really isn't. How do I fix that?

If entered properly the first two would be non-taxable ro...

macuser_22 — Sat, 01 Jun 2019 20:09:38 GMT

If entered properly the first two would be non-taxable rollovers and the third would be a taxable Roth conversion.

All three 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 and 4b 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. In the case of a rollover, nothing goes on 4b.

Thanks for the reply. Why are all three considered *incom...

Evanessa — Sat, 01 Jun 2019 20:09:39 GMT

Thanks for the reply. Why are all three considered *income* when one of the 1099R's is the same money as the other two combined? For example, the two accounts were 2500 each and put into an IRA of which I received another 1099-R for 5000. It doesn't seem like it should be calculated as *income* twice because it wasn't *more income*.

Because the tax code defines it as income. The tax code...

dmertz — Sat, 01 Jun 2019 20:09:42 GMT

Because the tax code defines it as income. The tax code also defines the rollovers as *nontaxable* income. TurboTax shows the total of all gross amounts to indicate that the total amount entered, not necessarily the amount that is taxable. The nontaxable income has *no* effect on your tax return, but the IRS requires it to be reported, constituting a legal statement by you that the rollovers were indeed completed as reported on the Forms 1099-R.