My wife and I are both retired Federal employees. We received our 1099Rs for 2023. Taxable amounts for Federal employees are often different from the Gross distribution since most pay into the retirement system and that contribution is taxed in the year it is earned (Note: this is not related to TSP or 401K contributions). During retirement we receive a portion back every year and this amount is deducted from our Gross Distribution since it was already taxed.
I input my 1099R into TurboTax and the tax was correctly calculated based on my Taxable Amount in block 2a. In my wife's case, the Tax was calculated on her Gross Distribution and her Taxable Amount was ignored, i.e. the software immediately calculated the tax when I input the Gross Distribution and when I input the Taxable Amount, there was no reduction in tax.
