If you received a taxable QDRO distribution from your former spouse, report this on your return as a "Nominee". The
reported payee should issue a Form 1099-R to the nominee payee (you) for nominee’s
share of the distribution.
If they choose not to send you a Form 1099-R, you have two options to report the income:
First Option:
Enter the amount you received in Line
21 with the caption, “QDRO Distribution from SSN xxx-xx-xxxx (former spouse's SSN).” Enter the QDRO income with the
following menu path:
- Federal Taxes
- Wages
& Income
- Less
Common Income
- Miscellaneous
Income
- Start
- Other
Reportable Income
- Start
- Other
Taxable Income
- Description
= “QDRO Distribution from SSN xxx-xx-xxxx."
- Amount
= $xxx
- These are not wages.
TurboTax will transfer this to your Form 1040, Line
21, Page 1.
You can e-file with this approach because the
disclosure is on the face of the return at Line 21. You can also e-file
using the step below instead.
Second Option:
If the named annuitant does not want to issue a Form
1099-R to the nominee, then the nominee (you) can enter it as a
substitute Form 1099-R (requires
Form 4852), by choosing that selection when they start the entry, i.e.
"I need to prepare a substitute 1099R."
When signed into your TurboTax account (online
or desktop):
1. Use the Search box in the upper
right
2. Search for 1099r
3. Jump to 1099r
4. Continue to enter your Form 1099R from
the statement and check the box for the statement above. (see image attached).
5. The nominee will enter the named annuitant's
information as the "Payer", including SSN as "Payer's
ID",
