ProSeries users, I have a question.....

[AZ-Tax]

A client has a 1099-R with a gross amt of $20201 and taxable amt of $15000. The client rolled over $4087 of the IRA to another trustee. Code 7. $1114 was retained by the Insurance co. for a surrender penalty and common sense would tell you the $1114 should have been subtracted from the gross amt but it wasn’t. 2007 form 5498 is not mailed out till June 1st and it will display $4087 for this client. 1 hour w/ProSeries tech support and they cannot figure out where the $1114 is entered. On the 1099-R wkst, if I enter $4087 in the rollover box, it increases the taxable amt $1114 on pg 1 1040 line 15b or $16114. If I enter $5201 in the rollover box, line 15b displays $15000

[Bees Knees]

You probably have to override the data fields to get the correct amounts and then file a paper return.

[BOB W]

I'm not Proseries, but I when I have the duel treatment of a 1099 I enter it as 2 different 1099Rs.
1 for the taxable distribution and 1 as a rollover G.

[AZ-Tax]

Bob, please walk me thru this..

Bob, please walk me thru how you would complete each 1099-R using my data below. Thanks.


A client has a 1099-R with a gross amt of $20201 and taxable amt of $15000. The client rolled over $4087 of the IRA to another trustee. Code 7. $1114 was retained by the Insurance co. for a surrender penalty and common sense would tell you the $1114 should have been subtracted from the gross amt but it wasn’t. 2007 form 5498 is not mailed out till June 1st and it will display $4087 for this client. 1 hour w/ProSeries tech support and they cannot figure out where the $1114 is entered. On the 1099-R wkst, if I enter $4087 in the rollover box, it increases the taxable amt $1114 on pg 1 1040 line 15b or $16114. If I enter $5201 in the rollover box, line 15b displays $15000
Edit/Delete Message

[BOB W]

You will just have to play with it. put in the roll over on the first screen then subtract that info from the second screen.

If you are trying to do away with the penalty, I don't see how you can at this stage with out the company reissuing the 1099 showing the net distribution on the 1099. Why they are reporting the penalty as part of the gross seems wrong.

I hope I have read your question correctly.

Appearently they took the money after it was removed from the plan and there may be a deduction for that somewhere else on the tax return, I don't know where at this writting.

[David1980]

Generally the question to ask your software company is "How do I get X amount on this line?" They're good at answering that question.

If you ask them "How do I treat this on the tax return?" you are effectively asking them how to do taxes. Software companies aren't so hot at that, technical support normally has much less tax training and experience than you do. Support is provided for how to use the software, not how to do taxes. Personally I wouldn't rely on my software company for how to do the taxes, just how to use the software.

So I would first determine where you want this to show on the tax return. Once you know that, you can figure out how to get it there using your software.

If the 1099R is actually showing $20,201 gross and $15,000 taxable it looks like the issuer already did the work for you. As the $15,000 taxable amount + $4,087 + $1,114 adds up to the gross.

Or is the $15,000 the amount you calculate as taxable and the 1099R shows the entire amount as taxable?