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PApop
Returning Member

Turbotax is not calculating the taxable income correctly from 1099R

I have an aftertax 401K with my employer, and I convert those funds into a Roth IRA.  Every year I receive a 1099R for this conversion.  My 1099R states the amount that was converted in box 1 and a taxable amount in box 2a.  It also lists my basis in box 5 and in box 7 code G.  When calculating my taxable income, turbotax adds the amount in box 2a to the difference between box 1 and box 5.  This effectively doubles my taxable income which I believe to be in error.  I was hoping someone might have a solution to this dilemma?

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4 Replies

Turbotax is not calculating the taxable income correctly from 1099R

Did you check the IRA box mistakenly?

TurboTax has specific questions about the scenario you describe with a 401k.

The tax would be on the taxable amount on your 1099-R.

Turbotax is not calculating the taxable income correctly from 1099R

Code G is a direct transfer and not taxable.  If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right.  @dmertz 

dmertz
Level 15

Turbotax is not calculating the taxable income correctly from 1099R

Make sure that you have not mistakenly marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form.  Make sure that you have not entered this Form 1099-R twice.  Check Form 1040 to see that only the box 2a taxable amount is included on line 5b.  The entire box 1 amount will be included on line 5a.

PApop
Returning Member

Turbotax is not calculating the taxable income correctly from 1099R

I believe you are correct and the form was completely incorrectly by the retirement benefits firm.  IRA/SEP/Simple is not checked on the 1099 or when entered into Turbotax.  I believe line 5 of the 1099R should be my basis or after tax contributions to the 401K, line 1 should show the full amount transferred, and line 2A should be $0.  This was the way my form appeared in prior years.

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