Tax Tips Why is the Refund Amount Changing When I Enter a Rollover Distribution? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Mar 29, 2006 Another thing we’re seeing with some regularity… folks entering Form 1099-R to report a distribution from a 401(k) or some other pension plan into an IRA are seeing their refunds go down (or taxes due go up) in the Refund Monitor when they enter the 1099-R… even when it’s a rollover! Rollovers aren’t taxable as everyone knows… but here’s what’s happening: when you start your entry of the 1099-R, and enter box 1 as the gross distribution, then enter box 2 as taxable distribution, that taxable distribution will immediately cause the behind-the-scenes calculations to run and your refund or tax due in the Monitor will change right away. As you progress down the form and enter the distribution code "G" (rollover), you’ll see that Refund Monitor change back to where it was before you made the box 2 entry! So… it’s just a timing thing! Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Browse Related Articles Tax Refunds How to Use Your Tax Refund to Boost Your Retirement Sav… Life Listen Now: So You’re Buying a Car? Self-Employed 1099-K Myths: Venmo & PayPal Payments Life Listen now: So you want to be rich? Tax Refunds How to Turn Money Into More Money Life Listen now: So you’re buying a home? Family So You’re Living Together? Tax Planning Did You Miss the Tax Deadline? 3 Steps You Can Take Nex… Tax Planning Tomorrow is the Tax Deadline: 7 Things You Need to Know… Self-Employed Do Creators Pay Taxes on Money Earned? Leave a Reply Cancel reply