1099-R, Box 7, Code 8

[Kara372]

I received a return of contribution from my employer 401k plan and box 1 and 2a of my 1099-R reflect this amount of gross distribution (return of contributions plus earnings). Box 7 reflects code 8. When entered to my tax return in Turbo Tax, it reflects it as non-taxable, and I cannot see how/why? Anyone having issues with this or know something I don't?

[macuser_22]

Where are you looking?     The box 2a amount should add to your taxable wages on line 1 on the 1040 form.

[Kara372]

I agree. That is why I'm perplexed. It's entered as taxable, but TurboTax does not include it as taxable. Guessing I'll need to call support.  When I get to the forms, it will not show as taxable - seems pretty straightforward/simple that it should be carried to page 1 as a taxable distribution. Just making sure I'm not missing something.

[macuser_22]

It  is not a distribution.  It is a return of contribution.     It will not be on line 5 on the 1040 it will be on line 1.

Delete the 1099-R and then look at the 1040 form line1, then re-enter the 1099-R.  Does the 1040 line 1 increase by the 1099-R box 2a amount?

[Kara372]

Agreed. Line 1 is tying directly to my W-2s. I've removed and re-added, and each time it gives me a summary of my input and then next to it, there is a column within Turbo tax that says $0 will be taxable (like it's good news..ha! i'd prefer it was right).  I've entered manually and through import and same result each time. Thanks for trying to help - i was just checking if anyone else had the issue or knew something that I didn't on the treatment.

[macuser_22]

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@Kara372 wrote:

Agreed. Line 1 is tying directly to my W-2s. I've removed and re-added, and each time it gives me a summary of my input and then next to it, there is a column within Turbo tax that says $0 will be taxable (like it's good news..ha! i'd prefer it was right).  I've entered manually and through import and same result each time. Thanks for trying to help - i was just checking if anyone else had the issue or knew something that I didn't on the treatment.

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Are You using the online version or the desktop version?

Did you look at the 1040 form?

What is the "summary" you see?

[macuser_22]

This is what I get with the online version.

1040 line 1 has $50,000 income

enter 1099-R with box 2a code 8 = $1,111.

1040 line 1 now has $51,111.

What are you doing that is different?