topic 1099R in Retirement tax questions

1099R

debbiedmcleod — Tue, 01 Apr 2025 01:26:39 GMT

My mother has a 1099R that shows a taxable amount of $95. The total distribution was $15,095. The code is 7D. This is an annuity investment my mother made in my deceased father's IRA account. She put $15,000 into the annuity two years ago, and it matured in 2024. Turbo Tax is showing the entire amount as taxable instead of the $95. Anyone know anything about this?

Re: 1099R

KrisD15 — Tue, 01 Apr 2025 01:41:27 GMT

It shouldn't.

Please go back through the entry and make sure you entered 15,095 in box 1 and 95 in Box 2a. Select both Codes, 7 and D.

The IRA/SEP/SIMPLE box should not be checked.

Only the taxable amount (95) should be listed on the 1040 line 5b.

Re: 1099R

debbiedmcleod — Tue, 01 Apr 2025 01:54:23 GMT

I have rechecked all of it several times, and everything is entered correctly. I just deleted the first and redid it. It still shows that the entire amount is taxable.

Re: 1099R

KrisD15 — Tue, 01 Apr 2025 02:09:55 GMT

Does the program ask if the IRA was inherited?

Are you looking at Form 1040 to see if it is being reported as taxable?

Is the IRA/SEP/SIMPLE box checked?

Here is how to look at the 1040 using TurboTax Online

Re: 1099R

dmertz — Tue, 01 Apr 2025 13:40:04 GMT

Examine Form 1040. The entire $15,095 is considered to be income, but if only $95 is in box 2a of the Form 1099-R, you should be seeing only the $95 of taxable income being included on Form 1040 line 5b. Also, box 5 of the Form 1099-R should have $15,000 in it. Check to see that all of the boxes on TurboTax's Form agree with those on the Form 1099-R provided by the annuity company. Make sure that you have not marked the IRA/SEP/SIMPLE box; the code D indicates that this is not a distribution from an IRA annuity.