I recently discovered an issue with the TurboTax online interface for 1099-R. I received a 1099-R and entered the information. I selected "I didn’t rollover or convert this money" when prompted. Later, I went in and changed that to "No, I rolled over less than $xxxx" and entered a value in the "Actual Amount" field to model how a partial rollover would affect my tax bill as I was still in the 60 day window to roll the funds over.
After that, I went back to the 1099-R screen and selected "I didn’t rollover or convert this money". When I clicked "Continue", I was brought back to the 1099-R screen but the change was not reflected in my Tax Due/Owed. In other words, changing the selection to "I didn't rollover or convert this money" does not clearthe amount entered in the partial rollover field, nor is the user presented with a prompt to do so. To clear the amount, I had to go back through and change the selection back to "No, I rolled over less than $xxxx" and select "I did something else". Only then was the rollover amount was removed and my Tax Due/Owed was updated accordingly.
I think this is a significant issue or defect in the product or user interface because if I had simply changed the setting to "I did not rollover or convert this money" and filed my return, I would significantly underreport my income to the IRS. It is reasonable to expect that selecting "I didn't rollover or convert this money" will set the rollover values to zero, especially since the user is not prompted to change them manually -- it simply takes the user back to the 1099-R screen. I understand that this is a less common scenario for most filers, but it could be a significant one.
Tl;dr - If a user enters values for a full or partial rollover in the 1099-R screen and then goes back and selects "I didn't rollover or convert this money", the rollover values are not reset to $0 and the filer is at risk of inadvertently underreporting income to the IRS.
