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I am trying to use Turbo Tax Deluxe to include a Rollover IRA

 
Wendy Reed's Avatar
  • Answered by:Wendy Reed
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Customer Question

I am trying to use Turbo Tax Deluxe to include a Rollover IRA to a Roth IRA But it will not allow me to split the distribution for 2010 over 2011 and 2012 as the tax law allows. Is this going to be fixed or should I use another product?

 



Already Tried:
I have entered all of the 1099R information for 2010 but Turbo tax shows it all in 2010 and includes the whole amount in 2010 income.

Submitted: 785 days and 22 hours ago.
Category: Financial Software
Value: $38
Status: CLOSED
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Expert:  Wendy Reed replied 785 days and 17 hours ago.

How did you code the distribution? It needs to be coded correctly as an IRA conversion to a Roth, so that Turbo Tax will ask you if you want to split the tax between 2011 and 2012 or be taxed fully in 2010. The code in box 7 should be 2 or 7 depending on your age. If it is not working right, you may need to delete the 1099R and enter the information again.

 

See: http://turbotax.intuit.com/support/iq/Retirement-Plan---Social-Security/1099-R--Code-G---Initially-Entered-as-Regular-Rollover--then-changed-to-Roth-IRA-Conversion-/SLN45742.html?_requestid=108344

 

Customer replied 785 days and 12 hours ago.

Wendy,

Thanks for the input but it still does not split the distribution over following years. I reentered the 1099R as suggested but it still reports the entire distribution to 2010 income. I did show code 7 and requested the distribution to be split over 2011 &2012. It just doesn't do it! What next?

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Expert:  Wendy Reed replied 785 days and 10 hours ago.

I am not sure why you are encountering difficulty, other than not answering a question correctly. There may be an issue with the code you are using. Instead of Code 7, you could try code 2. (early withdrawal, exception applies). The program will ask you if you converted all or part to a Roth IRA. After you answer yes, it will ask you "How do you want to handle your conversion" and give you the option to split it over 2011 and 2012 or include the whole amount in this tax year.

 

Please let me know if this helps.

Customer replied 785 days ago.

Wendy,

I tried using a different code (2) even though the code shown on my 1099R is (7) and it does not work either way. I selected the option of splitting the distribution over 2011 & 2012 but it still shows the entire amount in 2010 income. I've done this several times and get the same result. I am beginning to believe there is a glitch in the program! Has anyone had this feature to work properly?

Sonny

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Expert:  Wendy Reed replied 784 days and 23 hours ago.

So you do get the option to split over 2011 and 2012? That is good. If you check that box----then go to Forms (under View Forms) and check on your 1040.

 

On the 1040, line 15a should show the distribution--however, line 15b should be blank.

Next, look at your form 8606. Lines 25a and 25b should each show 1/2 of the 2010 distribution from your IRA to be added to 2011 and 2012 income.

 

Please let me know what you see on these forms. My copy of Turbo Tax (deluxe) does this correctly.

Customer replied 784 days and 22 hours ago.

Wendy,

I have not completed all of the deduction, taxes, etc. input yet. Is it possible to view the forms at this point or do I have to complete the whole proccess first?

If I can see the forms now, how would I get to them. The view forms option has not yet been presented.

Thanks,

Sonny Smile

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Expert:  Wendy Reed replied 784 days and 22 hours ago.

Ah, you might need to go through the process and do error checks first before you can view--- (sorry, I am not in front of Turbo Tax now, different computer)--But in order to view your forms, you will go up to the left hand corner where the menu options are displayed, and click on "view" and in that list click on "forms" and then choose the form you want.

 

Alternatively, here are instructions to use "forms" mode (you can switch back and forth between forms mode and step-by-step mode)---This only works for desktop software, not Turbo tax online:

 

http://turbotax.intuit.com/support/iq/Forms-Mode/Using-Forms-Mode-in-TurboTax/GEN12209.html

Customer replied 784 days and 22 hours ago.

Wendy,

Thanks, I'm using on line version. After I complete all input, I'll let you know how it all comes out so we can sign off! You've been very helpful!

Sonny Smile

Accepted Answer

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Expert:  Wendy Reed replied 784 days and 21 hours ago.

I see..but hopefully you will still be able to see your forms at some point before filing. The distribution amount should display on the first page of the 1040, but not be added to your gross income.

Expert TypeEnrolled Agent
Category: Financial Software
Pos. Feedback: 100.0 %
Accepts: 61
Answered: 2/16/2011

Experience: 10+ years of experience with TurboTax, TaxCut & HR Block at home

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