TaxAct uses the entries made for all Forms 1099-R to calculate the amounts that appear on Lines 4a, 4b, 5a, or 5b of Form 1040. If you think an amount regarding your retirement plan income is incorrect on Form 1040, review your Form 1099-R entries by following the steps below.
If you change any of the key 1099-R entries, it may affect the outcome of your return. Key entries include:
Box 1 – Gross Distribution
Box 2a – Taxable amount or 2b checkbox Taxable amount not determined or Total distribution
Box 7 – first and second distribution code (if applicable) and/or the IRA/SEP/SIMPLE checkbox
For example, if the taxable portion of the distribution does not appear on Line 4a, this may be because you are missing an entry/selection for box 2a/2b, or you failed to select the IRA/SEP/SIMPLE box when it applies.
You may be asked additional questions related to the following:
converted a traditional IRA to a Roth IRA
inherited an IRA
need to use the Simplified Method
rolled over amounts from an employer plan or traditional IRA 5329 Additional Taxes on Qualified Plans or Form 8606 Nondeductible IRAs
In these instances, you will be prompted to answer questions or start additional forms after entering all the Forms 1099-R. You’ll see only the additional screens if your entries indicate that these forms are needed.
Online
Dashboards
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Expand the Retirement & Social Security section.
Click Edit beside each Distributions from IRA, 401(k), Pension Plan to review your entries.
Classic Navigation
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Retirement Plan Income drop-down, then click IRA, 401(k), and pension plan distributions (Form 1099-R).
Click Edit to review your entries.
Desktop
From within your TaxAct return, click Federal.
Click the Retirement Plan Income drop-down, then click IRA, 401(k), and pension plan distributions (Form 1099-R).