Data from 1099-R isn't transferring to other areas of the return
Data you entered into the TurboTax 1099-R screens isn't carrying over properly to other areas of your federal and/or state tax return.
For example, nontaxable amounts from your 1099-R are showing up as taxable later on in the interview, or vice-versa.
Not transferring to other federal tax forms
In your federal tax return, the Form 1099-R may not be flowing to the appropriate form or field on a form for the following reasons:
- If the IRA/SIMPLE check box on Form 1099-R, Box 7 is checked when it should not be (it should not be checked for non-IRA nor non-SIMPLE pension and annuity distributions), the amounts will appear on lines 11a and 11b, Form 1040A, or lines 15a and 15b, Form 1040
- The IRA/SIMPLE check box on Form 1099-R, Box 7 is not checked when it should be (it should be checked for IRA-type distributions), the amounts will appear on lines 12a and 12b, Form 1040A, or lines 16a and 16b, Form 1040
- The IRA/SIMPLE check boxes on Form 1099-R, Box 2A and 2B on the 1099-R entry screen are blank, which causes all of the distribution to be included in line 16A as non-taxable. An entry must appear in the 1099-R box 2A or 2B for the income to flow to Form 1040 line16B as taxable.
- Line 16a or line 16b on Form 1040 is overridden (or both are overridden)
- All or a portion of the distribution has been rolled over but it is being taxed
To resolve this issue, you can try the following:
- If the IRA/SIMPLE check box on the Form 1099-R, Box 7 you received is not checked, verify that it is not checked on the 1099-R entry screen in your tax return in the TurboTax program.
- If the IRA/SIMPLE check box on the Form 1099-R, Box 7 you received is checked, verify that it is checked on the 1099-R entry screen in your tax return in the TurboTax program.
- Look for any overrides on your tax return and then make sure that you cancel them.
- In TurboTax desktop or CD/download, go to the form, then right-click on the field with the override, then select Cancel Override.
Other 1040 differences
Note that the amount shown on line 15b may be different from the amount shown on Form 1099-R, box 2a for one of the following reasons:
- You have tax basis in your IRA (meaning some of your money in the IRA has already been taxed). You will only have tax basis if you have ever made contributions that you could not deduct. Tax basis in your IRA will be shown on the last Form 8606 you filed. If you could always deduct contributions to an IRA, your basis will be zero.
- Part or all of the IRA distribution was a rollover.
- You have a Roth distribution and box 2a of Form 1099-R is blank, line 15b may show taxable earnings from your Roth IRA.
The following taxable amounts from Form 1099-R will appear on line 7, federal Form 1040 or 1040A:
- A disability pension you received before reaching the minimum retirement age. Enter on Form 1099-R with code 3 in box 7 and the box checked Yes on line E.
- Corrective distributions of excess salary deferrals, or excess contributions to a retirement plan. Enter on Form 1099-R with code 8 in box 7.
Not transferring to state tax return
This issue is often caused by incompletely filling out the 1099-R screens in the federal portion of the interview – especially the 2-digit state code from Box 11 of the 1099-R form.
You must enter all information (including applicable state information) from your Form 1099-R into TurboTax to ensure it will transfer correctly to your state tax return:
- Click the Federal Taxes tab and then choose Wages & Income.
- Click the Select Specific Topics button.
- On the Your Income screen, scroll down to Retirement Plans and Social Security and then click the Update button for the IRA, 401(k) and Pension Plan topic.
- Edit the 1099-R distribution in question and make sure there is a 2-digit state code entered in Box 11. Also make sure that the other fields have been copied over correctly from your paper 1099-R.
- When finished, go back to your State return by clicking the State Taxes tab and then step through the state interview again.
Also, correct state abbreviations must be entered. For example, an abbreviation other than NYC for New York City (such as "NY City", "New York Cty," etc.) will not flow properly.