Client received a 1099R with $3,500 in box 1 (gross distributions) and 2a (taxable amount). Also, the IRA/SEP/SIMPLE box is checked.
On page 2 of the 2018 1040, the amount in line 4a (gross distributions) is blank, and line 4b shows $3,500. If I uncheck the IRA/SEP/SIMPLE box the $3,500 shows up in line 4a.
Can anyone explain what I'm missing.
Thanks!