Direct Roll Over from Traditional IRA to Qualified Plan treated like income

[VolvoGirl]

It might ask if you rolled it over to a ROTH.  Do not pick anything that says ROTH on it.  If you rolled it over or converted to a ROTH it will be taxed.

[ErvKlaas]

I started over with the 1099-R and now everything makes sense.  Thank you Dmertz.

[JimRM]

I rolled over an IRA distribution to a new IRA.  TurboTax properly made the distribution as non-taxable, but the IRA distribution still shows as income.  This impacts my Medicare IRMAA costs.  Medicare uses Adjusted Gross Income, Tax Line 11, as income to determine IRMAA cost.  How can I remove the distribution from income.

[DoninGA]

@JimRM Look at your actual tax return, Form 1040 Line 4b.  There will be the word ROLLOVER and an amount of 0 on Line 4b meaning no taxable income was added to your tax return for this rollover.

If you are using the online editions -

Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

If you are using the desktop editions -

Click on Forms.  When in Forms mode click on the Form 1040 on the left side of the screen to open

[dmertz]

Nontaxable retirement income has no effect on Medicare IRMAA.  Form 1040 line 11 does not include nontaxable income.

[JimRM]

Thanks for the reply.

New question...

Turbotax is saying I have a late payment penalty. Most of my income was in the 4th quarter.  How do I review if I actually have a late payment penalty?

[VolvoGirl]

Do you have a penalty on 1040 line 38?  It's not for filing or paying late.  It doesn't have to do with last year's tax return or not paying estimates for this year.  The penalty is an "estimated" amount.    It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  Even if you are getting a refund you can still owe a penalty.  It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button