- Form 1099-R not "flowing" correctly
Why isn't Form 1099-R "flowing" correctly to Form 1040 or its variants?
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 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 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 will be included in line 16A as non-taxable. An entry must appear in in 2A or 2B for the income to flow to 16B 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 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 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, go to the form, then right-click on the field with the override, then select Cancel Override.
Select a link:
- How to enter a rollover
- How to review 1099-R entries
- Different amount appears on Line 15b, Form 1040
- Amounts that appear on Line 7, Form 1040
- State and local abbreviations (boxes 11 and 14, Form 1099-R)
- Inherited IRA
How to enter a rollover
Open your tax return, then do the following:
- Select the Federal Taxes tab in Basic, Deluxe or Premier, then select Income. In Home & Business, click the Personal tab, then choose Personal Income.
- In the Your Income screen, select the Select Specific Topics button.
- Select Retirement Distributions, then select the Start or Revisit button for IRA and Pension Distributions.
- Follow the on-screen instructions.
- In the Any Rollovers or Conversions? screen, make your selection.
- Follow the on-screen instructions.
How to review 1099-R entries
Open your tax return, then do the following:
- Select the Federal Taxes tab in Basic, Deluxe or Premier, then select Income. In Home & Business, click the Personal tab, then choose Personal Income..
- In the Your Income screen, select the Select Specific Topics button.
- Select Retirement Distributions, then select the Start or Revisit button for IRA and Pension Distributions.
- Follow the on-screen instructions.
- In the Form 1099-R Summary screen, select the 1099-R payer (the financial institution that sent the 1099-R), then select the Edit button.
- Continue through the screens and make sure all entries are correctly duplicated from the Form(s) 1099-R which you received.
- If any amounts on Form(s) 1099-R appear to be incorrect, contact the issuer for verification or to request corrected Form(s) 1099-R.
Different amount appears on Line 15b, Form 1040
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 a basis in your IRA. You will only have a basis if you have ever made contributions that you could not deduct. A 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.
- You made a rollover of part or all of an IRA.
- You have a Roth distribution and box 2a of Form 1099-R is blank, line 15b may show taxable earnings from your Roth IRA.
Amounts that appear on Line 7, Form 1040
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.
State and local abbreviations (boxes 11 and 14, Form 1099-R)
For information to flow correctly to state and local returns, abbreviations must be entered as indicated in Tax Help. For example, an abbreviation other than NYC for New York City (such as "NY City", "New York Cty," etc.) will not flow properly.
Inherited IRA
An inherited IRA is an IRA acquired as a beneficiary of the original IRA owner who died. The rules are different depending on whether or not the decedent was the beneficiary's spouse. You can visit the IRS web site to learn more about inherited IRAs.
