Taxable Income of life insurance that is cancelled

[Dan631]

When I enter my 1099R  box 1 is the total amount distributed.  Box 2A shows the taxable amount.  I entered the entire 1099R which also shows the basis in the contract in box 5.   Why does Turbo tax show both the taxable and the non taxable(basis) as income?   Is it a glitch in the program?  

[DavidD66]

Both the taxable and non-taxable portion or your distribution is income.  Part of it is taxable income, part of it is non-taxable income.  If you entered your Form 1099-R correctly the entire amount should be reported on line 5a, of Form 1040, and just the taxable portion reported on line 5b.  To view your Form 1040, select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.