MAGI/AGI is wrong. Turbo Tax counts IRA rollover as distribution. Is there a "fix"?

No, I did not get the same result!

 

• I posted both the TurboTax Online, and the Desktop CD versions.
• In both cases the total rollover amount is posted in 5a on the 1040.
• It says ROLLOVER below 5a.
• Since I included the entire amount as a rollover, Box 5b is zero.
• This is not included on line 11 Adjusted gross income in either case..

To check your posting of the 1099-R

Log into TurboTax

1. Under Federal
2. Select Wages & Income
3. Scroll to and select IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Now Edit the entry you've already posted
5. Continue the interview to
   1. Where is your distribution from?
   2. None of the above
6. What kind of retirement plan do you have ...?
   1. Qualified plan (most common)
7. Do any of these situations apply to you?
   1. None of these apply
8. How much of the $XX,XXX was a RMD?
   1. None of this withdrawal was a RMD
9. Did you roll over all of this $XX,XXX (Box 1) to another retirement account?
   1. Select either:
   2. Yes, I rolled over $XX,XXX to an IRA or other retirement account (or returned it to the same account).
   3. No, I rolled over less than $XX,XXX.
10. Finish the interview

Please contact us again and provide some additional details.

There was an issue with the calculation of the MAGI.  Please use the IRS Worksheet links below for guidance.

To determine the amount you can deduct for your IRA, including if you have a retirement plan at work, you can calculate it with the following guidelines.

 

• In Tax Year 2023 - you can contribute $6,500 if you're under age 50 / $7,500 if you're age 50 or older.
• You stated that your income was within the limits.  This limit is not your income.
• The calculation is done based on (M)oditied (A)djusted (G)ross (I)ncome MAGI.
• Line 11 of your 1040 is your AGI.  This number is adjusted to get MAGI.
  • For calculation for a a Traditional IRA see: Worksheet 1-1. Figuring Your Modified AGI (IRS Pub 590)
  • For calculation of a Roth IRA see: Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes (IRS PUB 590)
• Once you have determined MAGI you can see the chart below the worksheet to determine the maximum contribution.

Please contact us again with any additional questions

@dmertz @robertcoffey 

 

Post Edited 03/21/2024 

Same thing is happening to me. Its pushing my MAGI to the point where I don't get to claim full dependent credits. This is ridiculous. Its clearly a direct rollover, not taxable, and fully into a new qualified account. What should I do?

After upgrading to live help, and after multiple TurboTax "professionals" botched things to the point that I filed amended Federal and State returns - and ended up over-paying on both, I gave up and will never use Turbo Tax or any Intuit product again. Not ever. Mind you, they (3 different so-called accountant pro's) wasted dozens of hours of my life on the phone with them over a few months in 2024. It was impossible to get a refund from Intuit even though I cancelled my service subscription; the online refund portal did not work; and I never received a response or acknowledgement when I sent a letter and receipts and polite requests to them by mail. My advice is to give up immediately, file for an extension (which is free .... simply pay what you think you owe now), and consult a private CPA or one of those storefront tax outfits like H&R Block. I wish I could offer some help -- but I can't. And for that matter, do not waste your time trying to get help from TurboTax. Whatever they tell you will only make matters worse.