TD27. Similar issue relating to my 1099R . Specifically Service Member LE ( San Diego) duty related injury causing my retirement. My 1099 R box 7 is populated as CODE 3 ( no pun intended). Box 2a (taxable amount is 0). This is a non taxable income due to the nature of disbursement.
I receive a request every few years from the IRS requesting an explanation why my disability retirement is non-taxable. I dutifully send them the documentation each time.
My issue for 2021 ( not yet resolved) relates to the fact that even though I enter my 1099r info in TT, it does not auto populate the appropriate lines (5A and 5B ) on the 1040 .
DOUBLE CHECK YOURS
To the IRS it appears as though I failed to report because they have the 1099r from my employer .
To me, it appears as though I’ve reported it because I’ve entered it and it is listed in the docs list under tools in TT.
I was audited as a result of the “failure to populate” issue.
I’ve completed my taxes and discovered the same “failure to populate” line 5A and 5b. Absent TT software updates my only recourse it to print, complete manually and snail mail the return.
I have an agent on the job attempting to resolve the issue. Hopefully a fix will happen for this years filing.
in the meantime… best of luck and keep you service related disability documentation handy.
