IRA consolidation

[Old Sojer]

I consolidated two IRAs, transferring funds from one institution to another IRA. The 1099 is code G non-taxable. Why does TurboTax treat the transfer as Income? I did not receive the distrubution, it was transferred directly to the gaining IRA account. I understand the transaction was non taxable but it bumped up my total income for 2024 and that is bothersome. These are not new funds. I had the old IRA for 20+ years. Why does my annual income suddenly increase when I did not take distribution of the old funds, but transferred to an existing traditional IRA at another institution.

[MaryK4]

TurboTax reports the income as required by the IRS.  See IRA Distributions.

[VolvoGirl]

Code G is a rollover and not taxable.   If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right. For 1099R check 1040 line 4a/5a and 4b/5b for any taxable amount. If it was a rollover it should say ROLLOVER by the “b” line and 0 taxable.