TurboTax Online will not allow me to enter a Corrected 1099-R with 0.00 in Box 1 & Box 2a for a 1099-R that was issued to me in error

[dsb123tax]

TurboTax (online) will not allow me to enter a Corrected 1099-R with zeroes in Bpx 1 and 2a.

The corrected 1099-R is intended to reverse a 1099-R sent to me in error for a nontaxable Trustee-to-Trustee Direct Transfer of a traditional IRA to another institution. To be clear, I used a Direct Transfer, not a Direct Rollover.

After some trial and error, I got TurboTax to accept the corrected 1099-R by entering 1.00 in Box 1 and BLANK in Box 2a.

Before I submit my Federal and State returns, I have some questions:

(1) Is it okay for me to use $1.00 for Box 1 and BLANK for Box 2a? Those values do NOT match what is on the corrected 1099-R form itself ($0.00 for Box 1 and $0.00 for Box 2a).

(2) If not, how can I enter $0.00 into Box 1 and $0.00 into Box 2a? I cannot seem to get it to work for me.

Any suggestions and help will be much appreciated!

[ReneV4 · Accepted solution]

No. You should not enter either the original Form 1099-R, or the corrected Form 1099-R in your return at all.

Instead, keep them for your records and delete both the original incorrect entry, as well as the corrected entry from TurboTax.

To delete the entries, go back to Wages & Income, IRA, 401(k), Pension Plan Withdrawals (1099-R), Review

Click the trash can icon to the right of any entries related to this transfer to delete

Because a Trustee-to-Trustee transfer is non-reportable and you used a direct transfer, the original  Form 1099-R was issued by mistake and the corrected Form reflects this.

[dsb123tax · Accepted solution]

Thanks for the quick response to my questions.    Your detailed and easy-to-follow explanation is exactly what I was looking for.