Bob, Thank you for your input. When the question popped up, I said "yes" and then wanted to go back and change that. I couldn't find a way to do that, and the program was only allowing $77 as a credit on Schedule 3. It was carrying the rest to future years. I finally decided to just start the return over from scratch and answered "no" when that question popped up a second time. It is now allowing about $550 credit and I am getting no errors. Your explanation makes sense with the numbers I am seeing. Thank you.

Thank you. that is what I plan to do. However, since there is no 1099-R, I have no EIN to put into the worksheet to avoid errors. Can I just enter it as "Other Income" on Schedule 1 with an explanation that it is a non-documented distribution from a Keogh?

The entity is DR'S X, Y & Z PSP according to the financial data I was provided. The only thing that I can find seems to indicate that PSP is for "Priority Setting Partnership" an entity of which I am totally unaware. My client is Doctor Z. He has no idea of the structure of the entity other than telling me that the only assets are the funds in Keough plans for each of the doctors involved. When I asked him to get more information on the withdrawal of $230,000 he was told by the financial advisor "There are no 1099-R's generated. Attached please find March 2022 statement, on page 9 you will see your withdrawal. This is what the accountants use for tax purposes."   In the statement, there are records of holdings, sales, etc.  for the month of March only. That was the month of the withdrawal. In my experience, I know that Keough plans are funded by pre-tax dollars, so it would be normal for all withdrawals (distributions) to be fully taxable. The problem is that in the details buried in the statement, there are funds shown with basis, sales with gains, etc. I am a total loss as to how to correctly report this on the tax return.

That is not what my research reveals. Note bullet point 5 below. Who receives a 1099-R? Contract owners with reportable distributions from their annuities during the previous calendar year will receive a 1099-R. For more information, see "What is the difference between a reportable and taxable distribution?" below. If applicable, a 1099-R is mailed to the contract owner's address of record. For clients enrolled in electronic delivery, notification of 1099-R availability on the website is sent to the email address on record. The information on the 1099-R is based on the contract owner, not the annuitant (except for 457(b) government entity-owned contracts). If the contract has joint owners, the 1099-R is issued to the primary owner. A 1099-R is not generated on corporate-owned nonqualified, 401(k), Pension, Keogh, 457(b), or 501(c)(3) not-for-profit entity-owned contracts. A 1099-R is also not generally generated if your contract is held by a custodian company. In this case, please contact your custodian for your 1099-R.

On the Schedule B worksheet, go to the Dividend Income Smart Worksheet. Double click in the line where the Payer's name is entered. That will open the Dividend Income Worksheet. Scroll to the bottom to see section F. On line 8 you will enter Section 897 ordinary dividends and on line 9 Section 897 capital gains.