Hello. In 2018, performed a direct rollover of a previous employer 401k to a personal IRA ( traditional ). I received the 1099-R from the previous custodian and entered the information in this years TurboTax software. As I was progressing through the return, I took note that the amount of my refund was not increasing despite entering my deductions and, when I reached the end, TurboTax notified that I would receive a bigger refund by using the Standard Deduction. I found this odd but continued to the review anyway. On the year to year comparison screen I saw that my 2018 tax bill was significantly higher than 2017 despite the fact that my household income was substantially lower ( half ). The software was showing that my income was actually substantially HIGHER than 2017 and I found out that it was because the direct rollover was being added to my income. The 1099-R, Box 2a shows a "Taxable Amount" of $0.00 and, the Box 7 code is "G", confirming that it was a direct rollover and not a withdrawl.
Am I supposed to enter the rollover amount as an IRA contribution as well, to offset the calculation as income ?
