topic Re: 1099-R in Retirement tax questions

1099-R

angelartemis — Fri, 28 Feb 2020 04:04:04 GMT

The 1099-R has in box 2a 0.00 and we are unable to file the return because the program keeps telling us to recheck the amount in box 2a. Box 2b is checked Taxable amount not determined. We paid tax on this withdrawal at the time of the withdrawal so no tax should be owed. How do we get the program to efile since it keeps telling us to check box 2a.

Re: 1099-R

macuser_22 — Fri, 28 Feb 2020 04:15:18 GMT

Are you SURE that box 2a actually has a 0 (zero) and is not blank. A blank box 2a is NOT a zero box 2a. If blank, leave it blank.

A 0 in box 2a and box 2b (not determined) checked are mutually exclusive, one or the other but not both. If the 1099-R is actually 0 in box 2a and box 2b check then contact the account administrator for a corrected 1099-R.

Re: 1099-R

dmertz — Fri, 28 Feb 2020 13:00:14 GMT

You must enter the Form 1099-R exactly as it appears on the Form 1099-R provided by the payer.

Having taxes withheld does not make the distribution nontaxable. The distribution is still potentially taxable on your tax return and whatever was withheld for taxes is simply given to you as a credit on your tax return against the overall tax liability calculated on your tax return. The plan making the distribution has no way to know the actual amount of your increase in tax liability that will result from you receiving this distribution since it is not determined until you prepare your tax return.

Forms 1099-R for some types of transactions are not permitted to have a zero in box 2a.

What is the code in box 7 of this Form 1099-R?

Is the IRA SEP/SIMPLE box marked?