I am retired on disability and I reached Minimum Retirement Age (MRA) in tax year 2020. I receive a CSA 1099-R yearly. Tax year 2019, all my income was reported as “Wages.” Tax year 2021, all my income will be reported as “Pension/Annuity.” Technically, in tax year 2020, eight months of income were “Wages” and four months were “Pension/Annuity” if going by a specific day (birthdate) for before and after MRA.
My question is, for tax year 2020, do I report part of my income as “Wages” and part as “Pension/Annuity” -OR- all income as “Pension/Annuity?” If part “Wages” and part “Pension/Annuity,” how do I do this in TurboTax? I am not prompted in TT Interview mode and it is not done automatically. Further, I could not find a way to do it in TT Forms mode (using only a single CSA 1099-R entered into TT).
The older 2019 IRS instructions seem to be specific about on “the day after you reach MRA,” all income is “Pension/Annuity.” IRS reference below (for 2019 returns, 2020 not available yet):
Publication 575 - Pension and Annuity Income
For use in preparing 2019 Returns
Disability Pensions
“If you retired on disability, you must generally include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages on Form 1040 line 1 until you reach minimum retirement age. Minimum retirement age is generally the age at which you can first receive a pension or annuity if you aren't disabled. Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity.”
