Some of the summary screens within TurboTax will include distributions from accounts as income simply because you received the distribution. It was “income” to you. That does not necessarily mean that it is included as taxable income on your return.
Take a look at your Form 1040 to be sure that the distribution is not being included as taxable income on line 4b or 4d.
If it is showing as taxable income, then be sure that you did not indicate that the money was rolled into a Roth IRA, otherwise it would be taxable income.
Use these steps to Preview your Form 1040 while working in your tax return if you are using TurboTax Online:
- In the navigation area on the left side of your screen, click Tax Tools to expand your choices
- Click Tools, which will open the Tool Center
- Click View Tax Summary under “Other Helpful Links…”
- Click Preview My 1040 to see your actual tax form
Use the following instructions to go to Forms Mode if you are using the CD/downloaded version of TurboTax: How do I switch to Forms Mode? Using Forms Mode, you can see your Form 1040.
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