1040 Form Line 5 issues

Forum|Forum|3 years ago
March 6, 2023
1 reply
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Totally confused why Turbo Tax is adding my 1099-R's to Line 5B when I indicated that they were rolled over to a 401?

Back story: We have an pension program paid out monthly-so that would be considered income

2 1099-R's to report for total distribution, but were rolled over to another IRA (should not be considered taxable income)

Claiming the last 1/3 of a Coravirus distribution which should be added

So our line 5B states ROLLOVER but includes all the above being added together as income. How do I get the online program to understand that the 2 1099-R's were rolled over into a IRA? It asked me the question, and I stated yes.

Thoughts?

TurboTax Deluxe Online

AmyC

Level 15

The program asks about moving the money and then asks was all of it moved. If it was not all, you have to enter the amount. I think something got missed in this area. In addition, the pensions are probably coded as box 7 code 7 for a normal pension distribution rather than being recognized as rolled over funds. Proper answering should correct the location of the dollars.

When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and select Continue
On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and select Continue

Reference: Rollovers of Retirement Plan and IRA Distributions - IRS

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VBCoachAuthor

Level 2

Reply to Amy- I did enter the correct amounts and also answered Yes to all of the questions if the money was turned over to another account within the 6 mos. The "total distribution" box was also checked. When reviewing my form there is nothing on Line 7---It is all showing on Line 5. Line 5a is the correct amount of my pensions sums, but on 5b it is adding the following (pension 1 which should be taxed, pension 2 and 3 (which were rolled over and should not be taxed) and 1/3 of a Coravirus disaster amount. Am I incorrect, that pension 2 and 3 should not be taxed since they were rolled over another account?

Also, I really hate that we can not edit our own forms, when we discover problems like this, and have to try out figure the TurboTax software to find the answer as to how we can make things right.

Another other ideas?

VBCoachAuthor

Level 2

UPDATE: I have determined that the issue is that it is DOUBLING my Disaster Distribution amount. This is the final year that I have to pay 1/3 of that amount. I did enter my information from 2021 8915F when asked. How do I correct this?