Form 1099-R

Forum|Forum|4 years ago
February 2, 2022
1 reply
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TurboTax does not seem to calculate income tax owed correctly when a Form 1099-R is prepared with the "IRA/SEP/SIMPLE" Box between Boxes7 and 8 is checked. I received a Form 1099-R for a distribution from a regular IRA in 2021. When I input that "IRA/SEP/SIMPLE" contains an "X", TurboTax determines that the IRA distribution is 100% nontaxable. That is incorrect. When I remove the "X" when inputting the 1009-R, TurboTax correctly calculates the IRA distribution as taxable. However, then my tax return does not agree with the Form 1099-R as submitted to the IRS by Fidelity Investors. Is there a correction coming to the TurboTax software so I can properly submit my return with the knowledge that it agrees with the Form 1099-R submitted by Fidelity?

SteamTrain

Level 15

NO way to tell what's happening, since we can't see every entry in your form

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BUT, possibly this.

Edit that 1099-R but make sure you go thru the entries using the interview ...do Not make changes in "Forms Mode"

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OK..I get the same thing if there is a zero in box 2a. There should NOT be a zero in box 2a.

also, if it was from a Traditional IRA, I'm pretty sure one selection in box 2b "Taxable amount not determined" should be checked.

Then, In the "interview" when you get out to the table of 1099-R forms, you need to hit "Continue", and go thru a few more pages, because there is one page where you need to determine how much of that IRA distribution was taxable.

.... page is labelled "Any Nondeductible Contributions to Your IRA?"

...if you say "No" ..(if true), then all of box 1 becomes taxable.

...IF you say "Yes" ...that means that one of your "IRA" accounts has after-tax contributions in it and you will have to run thru the calculations that determines what portion of box 1 is actually taxable.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Tax-TiedAuthor

Level 2

Yes, once I worked through to the end of the section by responding to all of the "Continue" screens, the problem was resolved. Originally, I did not progress through all of the "Continues" because i am still waiting on a couple more 1099-R forms that I know are coming but are not yet ready to be released by the mutual fund families. Thank you.