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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I have a Federal Income tax question. I have four 1099-Rs,

Resolved Question:

I have a Federal Income tax question. I have four 1099-Rs, The first one shows where
I rolled, trustee to trustee, $62,000, which was a total distribution, from my 401-k to a simple IRA. The other three 1099-Rs are distributions from the IRA to my checking account for a total of $40,000. My question is: Using Turbotax, It asks me to plug in my four 10099-Rs and by doing this it gives me a total distribution of $102,000! Is this correct? If not how do I fix it?
This doesn't seem right since the 62k is not taxable income!
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Hello garbean,


Even though you do need to report all four of those forms, at the same time you will show that $62,000 of the total was rolled over in to another qualified plan.


On the 1099-R that you received from the rollover of your 401k to an IRA plan, it should show $62,000 in box 1 as the distribution amount, but then in box 2 it should show the taxable amount as zero. TT will ask you for information in both of those boxes. Just be sure to enter zero as the taxable amount from that form.



Thank you garbean



Customer: replied 7 years ago.
I filled in both boxes just as TT says and put 0.00 in box 2 but it still shows $102.000
as total distribution. When I input the amounts on the 3 distributions on each it asks me was this a rollover our a distribution but when I input the 62k It doesnt ask that question.
The code for Box 7 on the 1099-R is G.
Expert:  Merlo replied 7 years ago.

Hello again garbean,


It will still show the total distribution as $102,000. That part will not change. But it will not show that entire amount as being taxable as long as you entered -0- in box 2 of the one 2099 form for $62,000.


When you are done completing your return, look at the form before you file it. On form 1040, lines 15a and 16a should total $102,000. But lines 15b and 16b should only total to $40,000. And that is the only amount you will pay tax on.


If your forms do not show that, then you are not answering the questions properly in TT.



Thank you garbean



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