Phantom IRA Distributrion Income and Pension and Annuity Taxes

[aubutndan]

I use Turbotax Home and Business.  After completing my 1099-R form, I noticed my IRA distribution of was $32,000 higher than I entered, and a Pension Distribution Taxable amount of 499.00 for a Pension distribution I did not enter.   Very Strange.

On the 1099R form I entered everything correctly:

Gross Distribution

Taxable amount

Taxable Amount not determined (X)

Federal Income Tax Withheld

Distribution Code (7) - Normal

IRA/SEP/SIMPLE (X)

State Tax Witheld

State CA

State distribution Amount

On Form 1040:

line (4a) IRA Distribution amount is blank

line (4b) taxable amount is $32,000 more than the distribution amount

line (5a) pensions and annuities is blank

line (5b) taxable amount [of line 5a] is blank

In the 1040A worksheet, the explanation takes me to a form that says IRA distribution explanation, which is essentially blank

so how do you explain the $32,000 variance in distribution amount between the 1099-R worksheet and the 1040 Form and worksheet, and where did the Pension distribution amount come from at all?

[MarilynG1]

If you're using TurboTax Desktop, in FORMS mode, when you click on the Taxable Amount on Line 4b on the 1040 Worksheet, the magnifying glass opens a pop-up window showing the 1099-R(s) relating to this amount.

Click on the 1099-R(s) to open and check the Distribution/Taxable Amounts.  If there is a duplicate, choose 'Delete Form' at the bottom of the form.  You can edit amounts directly on the form if incorrect.

If you're using TurboTax Online, type '1099-R' in the Search window, then 'Jump to 1099-R' to see a 1099-R Summary.  You can then Edit or Delete as needed.

@aubutndan 

[aubutndan · Accepted solution]

After working with the Turbotax Support team yesterday, it was determined that the application made an error in how it interpreted a response to the IRA distribution response.  Although I selected "no" to the question about the distribution being used for Qualified Disaster, Turbotax generated form 8915 anyway, which caused the application to overstate the distribution.  This was a significant error because the net result was a steep overstatement of my income level, underpayment of tax due.  The net result was a $14 thousand dollar refund owed to me.  This same thing happened to us for both 2021 AND 2022 returns.  IMHO, Turbotax should compensate me for lost interest on $30K at a minimum.