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I totaled all the 1099-R forms box 1 (gross distribution) amounts and that matched line 16a on the 1040, but when I totaled the 1099-R forms box 2a (taxable amount), I came up with a lower number than what was on line 16b of the 1040.

The difference was identical to the amount of gross distribution on one of the 1099-Rs. On that 1099-R box 2a (taxable amount) has "$ .00". Line 2b (taxable amount not determined) is blank. I called the tax prep company to see if 1040 line 16b needed to be changed and they said no but I don't really understand why, since form 1099-R listed it as $0 taxable, that it would be taxed. The 1099-R is from ING Annuity & Life Ins Co, and box 7 has "7" in it if that has any bearing on it.

In the situation you describe a zero in Box 2a is treated the same as a blank, which is then treated by the software as fully taxable. There's nothing on the 1099-R to indicate that it isn't fully taxable.

So, the question is back in your court. Why should this be a tax-free distribution? Also double check to see if there's any information in any other boxes on the 1099-R.

Rule Your Retirement Home Fool
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