I am very confused on how to get this entered accurately into the software. It was for unused funds in a prepaid funeral plan. Turbo tax is treating it like IRA/Retirement money. What am I doing wrong? Is there a minimum $ to reporting this?
I am curious...what was the distribution code in box 7? And was the box for an IRA checked?
also, who prepaid the plan? You or someone else?
Thanks for your interest.... Box 7 = 4 and the box is not checked for IRA/SEP/Simple. In looking at the software it appears that the "form for 1099-R" not the wizard prompts has many more questions to respond to but I don't know how to get at the form that the turbo tax wizard is filling in.
Lines 5a/5b of Form 1040 includes distributions from insurance plans and nonqualified annuities, so that's where this needs to appear by entering the Form 1099-R into TurboTax. If the taxable amount on line 2a is zero, it won't have any tax consequences because there would be nothing to include on Form 1040 line 5b.