Rcvd 2 1099-Rs for the same money. Everything I read says that I need to enter them both but when i do, it doubles the amt I rcvd in income and changes the refund amount

[tasiamaya]

I quit my job and they gave me the option of rolling over the 401K account or cashing it out. We cashed it out. Now I'm receiving 2 1099-Rs for the same amount of money with 2 different payees. One has taxable amount and the other one doesn't. I'm told to enter both and that only one will affect my income received for the year. However, when I enter them both, they both show up in income (so it says I received double the amount) and it does in fact affect my refund amount significantly. When I just enter the taxable one I get a couple hundred dollars more. 

[MichaelL1]

It was not rolled to IRA, and then cashed in?  If not, you should only have one 1099R.  Call the issuers of the 1099R's and tell them about the other one, also talk to HR of company you left as something is not right.

[VolvoGirl]

What code is in box 7 on them?  Who are the payees?  They’re not both to you?  Or did you mean the payer?

[tasiamaya]

One of them has code G in box 7 and the other has code 1 Two different payers

[MichaelL1]

G is a rollover and 1 is the early distribution.  This was rolled to another account and then taken out per the 1099R's.

[MichaelL1]

I will show you how to do this in answer below, rollover will not be taxable but 2nd one will be.

[tasiamaya]

OK I think I got it. So the question pops up (on the one with a code G) asking if this is a rollover. It has no pre-marked. So I just switch this to a yes since that is what code G means correct?

[MichaelL1]

it is very difficult to get a 1099R cancelled or corrected, so I would follow below and tax impact will be the same.

[MichaelL1]

correct

[tasiamaya]

Ok good. Thank you for your help!

[VolvoGirl]

And don’t worry about the income summary and review screens.  Those will show them both as income.  But that is just for your benefit.  That isn’t your actual tax return.  Check 1040 line 16b for the right taxable amount.

[tasiamaya]

ok thanks!

[VolvoGirl]

Or does the one with code 1 from the IRA have the little IRA box (between boxes 7&8) checked?  That is very important so check that box on the screen.  The IRA 1099R distribution will show up on 1040 Line 15b.  So line 16b will only say the word Rollover by it.

[MichaelL1 · Accepted solution]

When you enter this, think only about the one you are doing when answering the questions that follow the 1099R entry.

So when doing the one with the G you will say rolled over to Non-Roth account.

The 2nd one you say you did something else with it --Cashed it in.

 To enter pension and annuity Payments (1099-R)

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button