Hello and thank you for using Just Answer,Yes you are correct the entire amount would be taxable to you. TurboTax has a process they require that you follow.If you believe the situation was caused by a calculation error within the TurboTax software and you have been assessed penalties and interest which you have had to pay because of this, you may submit your claim for review using the form located on their Web site here.They also advise:Note: You need to respond to the taxing authority as soon as possible. If a calculation error is found, Intuit will only reimburse the amount of penalties and/or interest paid by you from thefirst notice received.
So contact TurboTax ASAP and make sure that you fill out the claim. They will most likely advise you on the following:
When you run the Error Check, TurboTax evaluates your return against what is needed for filing a return and looks for:
It sounds like you were using a "safe harbor" method of calculating your distribution based on contribution amounts. This would not be correct as a 401K is tax deferred including the contributions. Safe Harbor methods are used to determine how much of the distribution has already been taxed and then just the remaining distribution (earnings) are taxed.
I sincerely XXXXX XXXXX TurboTax process is simply handled for you and all works well.
Robin, it automatically would go to that amount each time i put imy 1099 from my 401k in....would this not be turbo taxes error?
It sounds like it to me but I, unfortunately will not get a say in the process. TurboTax will be bale to go into their program and see how the entries were made and what their program did with it.
I suggest you contact them as soon as you can and submit your claim.
I do know they are very specific about that.