Taxable amount on form 1099-R and Impact to Tax Due

[madben]

There is no excess contribution though...

[macuser_22]

Is that all the error says?   No other form number or just what "taxable amount" it is referring to?

I have no idea what it might be referring to then.

[madben]

Here is what is displayed in the screen:

Check This Entry

Form 1099-R (Institution Name): Taxable amount should not be zero if there is no prior year excess traditional IRA contribution on line 4 of the IRA Information Sheet:

Box 2a  [ 0.0 ]

Underneath, it is the full 1099-R form displayed in a framed window with its own scroll bars.

[macuser_22]

Delete the 1099-R and re-enter *exactally* as it is on the form. 

As I posted above a 1099-R with the IRA/SEP/SIMPLE box checked MUST have box 2a the SAME amount as box 1 as you said that it was on your form above.

You cannot just change it to zero.

[madben]

When I put the same amount in box 2a, the problem is that Turbo Tax increases my tax due by several thousand ignoring the fact that all the contribution to the IRA was originally nondeductible, and I'm trying to figure out how to let Turbo Tax take into account the nondeductible contribution (100%) instead of treating it as deductible contribution and calculate tax on the distribution.

[macuser_22]

I told you above, even some screenshots, how to enter it.

This works perfect in TurboTax and the interview has not changed in years. 

Either the IRA box is not checked when you enter the 1099-R, or you are not completing the interview.

[madben]

You're right. Somewhere I missed one step here or there. Either the tax basis not entered correctly or the interview question didn't pop up or some amount has been incorrectly updated by me. I cleaned up all the 1099-R forms and started from scratch. This time, the interview question somehow doesn't pop up, but I was able to search the exact phase and "jump to" the form directly and entered the information correctly.

Finally it worked. Thanks so much again for all your expertise and patience! Really really appreciate your help!

Have a good evening!

[RME9]

I am getting a error when trying to efile and the message says state tax withheld can not greater or equal Gross or State distribution...which it is not. State tax w/h $2,975 and Gross Dist. $59,500 so why am I being asked to review and cannot efile?

Not very good

[JohnW152]

Here's how to review your 1099-R and make any changes necessary:

1. Sign in to your TurboTax account
2. Open (continue) your return, if you don't already have it open
3. Locate the search bar by the magnifying glass icon in the upper right corner
4. Search for 1099-r, and select the Jump to 1099-r link in the search results
5. Scroll down to the relevant Form 1099-R, and select Edit or Review to the right
6. Review your entries in the following screens, making any changes necessary

@RME9

[macuser_22]

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@RME9 wrote:

I am getting a error when trying to efile and the message says state tax withheld can not greater or equal Gross or State distribution...which it is not. State tax w/h $2,975 and Gross Dist. $59,500 so why am I being asked to review and cannot efile?

Not very good

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If there is a state tax amount on your 1099-R in box 14, then make box 16 the same as box 1 if it is blank on your form.     A blank box 16 is understood to be the same as box 1 but some states do not like that and insist that box 16 be the distribution amount.