You are correct to ask why your OPM survivor annuity isn't coming up as taxable. In most cases, but not all, it is.
OPM survivor annuity 1099 R. Take a look at box 9b - employee contributions. This box dictates what amount of the withdrawal is taxable to you.
Please be sure to enter OPM 1099-R as CSF1099-R (as a survivor) and not as a regular 1099-R. The program will guide you through questions on OPM distribution:
1. Federal Taxes
2. Wages & Income
3. Scroll down and select IRA, 401(k), Pension Plans. On the screen Tell Us Which 1099-R you Have please be sure to select CSF-1099-R Civil Service survivor annuity. Select Continue and you will see automatically filled in information on OPM. Select Continue again and you will see Enter Annuity Information screen. You will be prompted to data entry and additional questions about your annuity. Please be sure to enter all information – including your contributions- exactly as it appears on the form. This will ensure proper calculation of the taxable amount.
Go here for a Q&A about the CSF1099R form.
Please refer to the following link for additional information:
Guide to Tax-free portion of Civil Service Survivor Benefits
IRS Publication 721
The reason there is no amount in box 2a is that it is unable to be determined by the issuer of the tax reporting document.
Publication 721 describes in Part IV and Part V how to determine the taxable or tax-free portion of a Civil Service Survivor Annuity using certain criteria, the date of the annuitant retirement, and the amount of contributions the annuitant had previously used to reduce their taxable portion using the Simplified Method or other method based on the date of retirement.
