The TaxACT program uses the entries made for all Forms 1099-R to calculate the amounts that appear on Lines 15 and 16 of IRS Form 1040. If you believe an amount regarding your retirement plan income is incorrect on Form 1040, you may find it helpful to review your Form 1099-R entries. 

To enter or review Form 1099-R Distributions from Retirement Plans in the TaxACT program:

 

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Retirement Plan Income to expand the category, and then click IRA, 401(k), and pension plan distributions (Form 1099-R)
  3. Click Add to create a new copy of the form or click Review to review a form already created
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

 

Changing any of the key entries listed on Form 1099-R may affect the outcome of the tax return. These key entries include Boxes 1, 2a, 2b, 7 (both the numeric and alpha codes) and the IRA/SEP/SIMPLE checkbox.

For example, if the taxable portion of the distribution is not appearing on Lines 15b or 16b, this may be because Boxes 2a and/or 2b are not properly filled out. Another example would be if you notice an IRA distribution amount appearing on Line 16 instead of Line 15. You would then want to ensure the IRA/SEP/SIMPLE box is checked.

Also, be sure to watch for additional questions relating to the following items, if applicable in your situation:

  • Converted a traditional IRA to a Roth IRA,
  • Inherited an IRA,
  • Need to use the Simplified Method, or
  • Rolled over amounts from an employer plan or traditional IRA.
Note: In some situations, you may need to fill out additional information which will flow to Form 5329 Additional Taxes on Qualified Plans or Form 8606 Nondeductible IRAs. In these instances, once you get back to the Form 1099-R Summary screen after entering all the Forms 1099-R, you will want to click Continue. You will only see the additional screens if your entries indicate these forms are needed.

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