I have a 1099R from a direct rollover from a pension to an IRA. Is this considered income? I did not see any of the money

  • But Turboi tax added to my income?
  • Mine was not rolled to a IRA but to another 401k.
  • I have a 1099-R that shows a non-taxable distribution from a 401K to an IRA with a code G but Turbo Tax is still including this distribution as total income. It is throwing off my income number and limiting my ability to qualify for tax credits and deductions.
  • Did you get this resolved because I am having the same issue?
  • Not sure why it adds it to income and calls it "pension income." only place I might have replied differently to interview easy guide was in whether it was rolled to a qualified Roth IRA - but it was direct rollover to Traditional IRA.  Disconcerting to see it as income - it wasnt.
  • No response yet. In places it looks like Turbo Tax adds it to income (Tax Summary) but in other places (on the 1040), it doesn't. I'm really not sure if this is affecting my AGI or not.
  • Do not be mislead when you see the gross distribution on the income summary screen.  This does NOT  necessarily mean that TT is treating 100% of the distribution as taxable income.
  • Bring up the 1040 and look at line 16.  You will see both the gross # on the "inside" and the net taxable # on the "outside"
  • Thanks. It just seems like my tax credits were reduced a lot more this year and my real income wasn't that much higher. It seems disproportionate so I thought it might be a software glitch with TT.
  • IF you have the desktop version and you also used TT in 2011, you can go to forms and bring up the "2 yr comparison".  I use it all of the time as a QC device to see if I might have missed something.  In will show you EXACTLY why your 2012 results are different from 2011.
  • And the comparison is exactly where I see an huge difference in the Other Income entry. Which is definitely not working correctly in this years version of TT!  It is absolutely counting to the "bottom line" for purposes of Income level and eligibility for credits and deductions, as well it bugs over and over that the taxable amount for these entries is missing "Verify Box 2a and 2b".
  • You need to post a new question explaining exactly what you think the program is doing incorrectly.  There are a lot of very knowledgeable folks reviewing posted questions but they are not going to see replies you are making to 23 day old questions that have long since been answered.
  • So bug up the community with new ways to point out issues with the same question? Seems redundant and unwise to me. Your reply seems to contradict that no one will see replies to a 23 day old question. Just because someone votes up an answer does not make it the correct one. "G" doesn't help when it is actually "H" or some other code, yet it is the recommended answer to a question that didn't ask about codes. If you don't care to discuss further then don't. There are plenty of other responses to this thread even as fresh as 22 hours ago.
  • I am having the same problem. This make the total gross extremely high when I did not see any of the rollover amount.  This overstates the total income, which is incorrect.  Does TT have a solution?
  • You have to include in your return all  of your 1099-R's even if the distribution was transferred to another retirement account and you never received any funds.  (The IRS compares the 1099-R information you report to what they receive from your financial companies.)  There are several different kinds of account transfers, most result in non-taxable "rollovers", some, like Roth conversions, are taxable.   

    The number or letter shown in Box 7 is critical.  This is called the "distribution code".  What's entered here, along with the answers to the questions, will determine how the distribution is treated.  

    Do not be mislead when you see the gross distribution on the income summary screen.  This does NOT  necessarily mean that TT is treating 100% of the distribution as taxable income.
  • It may not be adding it as taxable, but it is inteferring with other tax credits, such as the Child Tax Credit, sending my husband and over the bottom line to get the $1,000 credit per child (deducting $ from the child credits). This is messed up. I'm trying to call them now and have been on hold for a while
  • Did you find out anything by calling them? I haven't had a chance yet but my child tax credits were reduced as well because of this problem.
  • same problem for me - i wondered why i am owing the same amount in taxes as last year, even though our income was much less (this rollover amount is skewing everything!)...
  • I have a rollover from 401K to IRA. 1099R shows taxable amount as 0 in box 2a of 1099R. TurboTax won't take it as nontaxable income. Any help?
  • same here.  We rolled over 2 401K (company purchased) directly into another 401K with the new companies.  1099R shows as non taxable, Box 7 is coded G.  TT denied my student loan credit stating our income is too high.....only due to the fact that the 401K rollover amount is included in the income calculation.  It wasn't income.  It was direct rollover.
    Any resolution?
  • One of my rolled over account 1099r is also showing as Income on line 15b it was "Rolled over NOT taken as distribution" - how do we fix this in TT ?  What entry is causing it?   A) in form 1099R  the Tax not determined is checked,  box 7  has got  7  in it  and IRA/SEP checked  ... so what do we need to change ?? to correct TT ??? PLEASE HELP  Thx

To report income from a 1099-R:

Go to:

Federal Taxes

Wages & Income

Retirement Plans & SS

IRA, 401(k), Pension Plan Withdrawals (1099R)

You have to report all 1099-R forms received even if you know the funds were rolled over to another retirement account and you are certain that you do not owe any tax. The IRS compares the 1099-R information you report to what they receive from your financial companies. IF it's a rollever, TurboTax WILL NOT treat the gross distribution as taxable income if you fill out the input screen correctly and answer all of the questions.

The number or Letter shown in Box 7 is critical. This is called the "distribution code". What's entered here, along with the answers to the questions, will determine how the distribution is treated.

Pay attention to box 13. It contains 2 separate data items; your state's 2-letter code and the "payer's state ID number".

  • turbotax won't let me check the yes box for the rollover, it's added as income
  • I have the same promlem as indicated by ellaben above. the check box for rollever will not accept the yes
  • I am also having the same issue.  My taxes are accurate and complete with the one exception of reporting the 1099 R which in my situation is non-taxable as we returned the exact amount of funds to the same IRA account well within the 60 day timeframe.  TT is treating this as income.  I'm entering Box 7 with a '2' and then checking the smaller box within Box 7.  There isn't any other coding options in TT, or it's not giving me any other coding options.  Is this not a feature in TT?  I'm running out of time and hope someone out there has an answer.
  • One more thing...I am CERTAIN I don't owe taxes, have reviewed the returns with a tax specialist as well as my investment advisors.
  • Turbo tax accepts all the codes.
    When you put box 7 with a '2' that means "TAX".  Use code "G" to report a Direct Rollover (or a rollover within 60 days ! ) actually Turbo tax accepts 2 codes so "2G" will work also
I received 146.00 from 401 k to close it out and paid 29.27 in taxes
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