1099R total distribution code 7 for 403b that should be taxable is being categorized as roll-over incorrectly

[taxingtim]

I have a 1099R from my 403b for at total distribution (code 7) that I took the money and did not convert or rollover.  Fed and State taxes were withheld.  Total distribution box checked.  When I put this information in TurboTax Home and Business says that it is not taxable since I rolled it over.  It should be taxed!  How do I code this in such a way that it is taxed?  

(FYI I have a separate 1099R from same company but different account that I did rollover into an IRA, but turbotax is treating that properly. )

[ThomasM125 · Accepted solution]

A code 7 in box 7 on a Form 1099-R would mean you had a normal distribution that should show as taxable in TurboTax. The only way it would be reflected as a rollover is if you indicated that in response to the questions you will see after you enter the form. I suggest you delete the Form 1099-R entry and re-enter it, making sure you do not indicate that it is a rollover.

To delete the Form 1099-R:

1. Choose the Tax Tools option on your left menu bar while working on your return

2. Choose Tools

3. Choose the Delete a form option under Other Helpful links 

4. Find the Form 1099-R in the list and delete it

[taxingtim]

I deleted my original entry and re-entered it after downloading the updates from Turbotax.  Now it is showing as taxable.  Thanks for the suggestion!