topic Is it blank or "0"? Is Box 2b checked? in Retirement tax questions

My box 2a is zero on my 1099-R as it is non taxable, but TT won't let me file as SmartCheck is saying it can't be zero. How do I get by this edit in TT?

dhoida — Thu, 06 Jun 2019 14:37:33 GMT

These were taxed dollar contributions, and pre-1986.

Is it blank or "0"? Is Box 2b checked?

MichaelDC — Thu, 06 Jun 2019 14:37:34 GMT

Is it blank or "0"? Is Box 2b checked?

Hi Michael - Thanks for the response. It is "0", as are...

dhoida — Thu, 06 Jun 2019 14:37:36 GMT

Hi Michael - Thanks for the response. It is "0", as are boxes 3,4,6,9b,12,15, and 17. Box2b it says "Taxable amount not determined" and "Total distribution", there's no boxes though so I'm assuming that means I must check the boxes in TT. Line 7 is code "1" and then it says IRA/SEP/SIMPLE, but no box, so again I assume that means I should check the box for IRA/SEP/SIMPLE so I did. Important note: If I don't make those assumptions in 2b and 7 IRA/SEP/SIMPLE and don't check the boxes in TT, then it clears the SmartCheck edit.

I can see your confusion. The custodians sometimes don't...

MichaelDC — Thu, 06 Jun 2019 14:37:37 GMT

I can see your confusion. The custodians sometimes don't make it easy to read. It would be incorrect of them to use a "0" in 2a and check the 2b box (Taxable amount not determined). I think you have a handle on it. I'm answering with what is a typical problem in these instances. Let me know here if you need anything else.

Attaching a typical 1099-R for clarity.

MichaelDC — Thu, 06 Jun 2019 14:37:39 GMT

Attaching a typical 1099-R for clarity.

OK - thanks much. I read the instructions on the back a...

dhoida — Thu, 06 Jun 2019 14:37:40 GMT

OK - thanks much. I read the instructions on the back and they reference "if this box is checked". So they must put and x or a box and an x if these apply. So since there is nothing there but the words (no "x" or no box with an "x"), I will uncheck them all in TT.

If there is no IRA/SEP/SIMPLE box on your 1099-R then it...

macuser_22 — Thu, 06 Jun 2019 14:37:42 GMT

If there is no IRA/SEP/SIMPLE box on your 1099-R then it does NOT APPLY - do NOT check that box in TurboTax. That box would only be checked it this was a IRA.

Having box 7 a "1" and no IRA box indicated that this was not an IRA but a different type of retirement account.

Having both a 0 (zero) in box 2a and box 2b "taxable amount not determined" appears to be an error on the 1099-R that the issuer of the 1099-R needs to correct. Are you sure that box 2a was not blank and you entered a zero?

Yes, I am sure. Box 2a is a "0". I believe now that nei...

dhoida — Thu, 06 Jun 2019 14:37:43 GMT

Yes, I am sure. Box 2a is a "0". I believe now that neither "taxable amount not determined" and "total distribution" are just listed there as words. There is no "x" or box by either phrase, so I now understand that to mean they are NOT checked.

Delete the 1099-R and re-enter exactly as on your form....

macuser_22 — Thu, 06 Jun 2019 14:37:45 GMT

Delete the 1099-R and re-enter exactly as on your form. Do not mark any box not marked on the form and any blank box on the form leave blank in TurboTax and answer the followup questions.

Correct, with those not checked in TT, as I've since lear...

dhoida — Thu, 06 Jun 2019 14:37:46 GMT

Correct, with those not checked in TT, as I've since learned they are just listed and not checked on my 1099-R, it makes it through the SmartCheck edit's. Thank you TurboTaxMichaelDC and macuser_22 for your help.

More than a pleasure. Good Luck!

MichaelDC — Thu, 06 Jun 2019 14:37:48 GMT

More than a pleasure. Good Luck!

1099-R’s come in two versions. In the first version both...

MichaelDC — Thu, 06 Jun 2019 14:37:49 GMT

1099-R’s come in two versions.

In the first version both box 1 and box 2a contain #s. This means that the plan custodian had the information to determine the taxable amount and did so. (Box 2b should NOT be checked in this version on your 1099.) Enter both #’s, (even if they are the same), and TT will put the amounts on either Lines 12a & b of the 1040A or Lines 16a & b of the 1040.

In the second version, box 2a is blank and, IF there is a box 2b, it will be checked. This means that the plan custodian did not have the information needed to determine the taxable amount. Leave box 2a blank, do not enter "0". Regardless of whether or not your 1099-R has the checkbox, you should check it on the TT screen since that tells TT that you left box 2a blank on purpose.

Based on your answers to all of the program's questions TT will compute the "box 2a" taxable amount and transfer it to the 1040 or 1040A. You don't need to attempt to calculate the taxable amount yourself.