I'm sorry for your loss. One option would be to enter a negative entry to Other Income to back out the additional income. Another option would be to reduce the income reported on the Form 1099-R entry, then mail the tax return in and attach a statement explaining the adustment to the 1099-R entry.
If there is a state tax return involved, the pension may get a special treatment on that return, so changing the 1099-R entry would be the better choice in that circumstance.
Here's how to make a negative entry to Other Income:
- Choose the Federal option on your left menu bar
- Choose Wages & Income
- Find Less Common Income in the list of income sources
- Use the Show More option to expand the choices and choose Miscellaneous Income, 1099-A, 1099-C
- Choose the Other Reportable Income option and find Other Taxable Income in that section
- Enter a description for your entry and the amount as a negative number
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
