1041: HOW TO REPORT 1099R THAT HAS A LOWER TAXABLE AMOUNT THAN BOX 1 WHAT DOES CODE D 2 MEAN?

[qbteachmt]

Here is a Help article, with Codes:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

[Just-Lisa-Now-]

Use the amount in the Taxable Income box.

[Accountant-Man]

I report both in Other Income, line 8. i.e.,

Gross distribution           $10,000

Less non taxable portion $-9,000

[qbteachmt]

If that code means this is from an annuity, there likely is basis or costs that explain the gross vs taxable difference.

More details always help.

[MiJoMo01 · Accepted solution]

Yes, that is what I finally did.  Remember, the 1041 Estate and Trust Form does not show a 1099R in the forms selection.  I finally had to manually hack it by putting in the amount of reduction between box 1 and box 2 as a negative figure in the "Other income" input line 8, and then line the reduced amount shows up in the right-side income on line 8

  Thanks for your response.

[MiJoMo01]

I also put Code D - 2 on Line 8 to distinguish the character of the distribution.

[sjrcpa]

That Code D also indicates this is subject to Net Investment Income tax so take that into consideration for Form 8960 and/or K-1s