Pension

[jmcnorton]

I need major help. I was getting ready to fill and  i felt something was not right. The issue is your programing is listing all my company pensions an IRAs I saw this last year and the year before.  Understand I followered the instructions to the letter. I need to correct htis and posossiably refile 2022. Your program had us getting a refund last year, but we got  a bill for $2200. Please help

[MarilynG1]

Most income reported on Form 1099-R, whether is is an IRA, a company pension, a 401K, an annuity, etc. are all taxable income on your return.

This is because most of these were pre-tax contributions, so they are taxed coming out, and they are all taxed at the same rate.

The only difference would be in the case where you made after-tax contributions to a retirement fund, and in that case, the non-taxable amount is shown in Box 5 on the 1099-R.

When entering your 1099-R, TurboTax specifically asks if the 'IRA' box is checked on your 1099-R.   This is because some rules for rollovers/conversions, etc. are different for IRA's, and not because they are taxed differently.

So on your Form 1040, amounts for your retirement income will show on Lines 4a or 5a, and taxable amounts (usually same amounts) on 4b and 5b, and they are taxed the same.

You can review your entries in the 1099-R section to check your answers to the 'IRA box checked' question, but in the net out, income effects are the same either way.

Here's more info on Distributions Reported on Form 1099-R and Tax Tips in Retirement. 

[VolvoGirl]

Whether they show up as taxable on 1040 line 4b or 5b it won't change the tax on your return.  But if they are on the wrong line the IRS might miss them and say you didn't report them and send you a bill.  Is that what happened?  Then you just need to tell them the income is on the other line.  

On the 1099R  the little IRA box is between boxes 7&8.  That determines which line it goes to.

If you edit or review a 1099R it does not keep your answers from before but resets them to the defaults. Then you have to go through and answer them all again.   So be sure to go all the way to the end of the 1099R section.  They are right unless you go back.