Form 1099-R: taxable amount is $0 but gross distribution amount was added to income

Laurence
Laurence Member Posts: 3 Newcomer
in Filing my taxes

Hi,

I have entered my Form 1099-R with Box 1 (Gross Distribution) : $405 and Box 2a (Taxable amount) : $0 and the software added $405 to my taxable income. I think it's not right but I don't know how to correct it. Thank you

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Answers

  • JMSSGV
    JMSSGV Member, Star Posts: 304 image

    What kind of plan was the distribution taken from? Why is the distribution not taxable? What code is in Box 7 of the 1099R, and did you enter it correctly? Is the "taxable amount not determined" box checked?

  • Laurence
    Laurence Member Posts: 3 Newcomer
    edited February 2025

    Distribution code (Box 7) is W

    Box 2b Taxable amount not determined has only ( )

  • JMSSGV
    JMSSGV Member, Star Posts: 304 image

    If you put a W in the box 7 field, you should be able to make the 2a field a zero. Is it not allowing you to do this?

  • Laurence
    Laurence Member Posts: 3 Newcomer
    edited February 2025

    yes I did put a zero in 2a, but I saw the $405 in the AGI

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 276 image

    Hi Laurence,

    Double check to make sure you have entered all boxes correctly on your form into the software program. Uncommon boxes that are easily missed include 8 - 12.

    By including $0 in box 2a your distribution is non-taxable.

    You may need to log in to your account and contact Support for additional guidance.

  • justaguy
    justaguy Member Posts: 1 Newcomer

    I have a 1099-R distribution that should not have a tax impact by the nature of it. However the gross distribution keeps flowing through. For this example, gross distribution was $10,000 and box taxable income not determine was selected, and had a code 7 distribution. I went ahead and put in the gross distribution amount. I then selected taxable amount not determined and put in $0 for taxable amount as it should be. However, it keeps showing the gross distribution of $10,000 as taxable towards AGI. What am I missing to show this as $0?

  • kiarab
    kiarab FreeTaxUSA Agent Posts: 263 image
    Hello justaguy,

    There are a few reasons why it still may show as taxable. Did you see if the IRA box is checked, is this a rollover or a conversion, what is the basis of your contributions, etc?

    I think the best thing to do would be to contact customer support and provide details about what kind of distribution this was, if you did anything with it, if it was pension income or IRA, etc. That will help them know what to look for on your return to see if anything was entered in incorrectly.

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