my wife started getting $ from her pension in march 2019. the 2020 Turbo tax states the following (see italics). only issue is we didnt have a 1099-R for 2019 so we have nothing to look at. do we check
"The amount in box 2a was NOT used as the taxable amount." or "The amount in box 2a was used as the taxable amount."?
Figuring Out What Taxable Amount You Previously Used
Your 1099-R box 2a for this distribution shows a taxable amount. If you have basis - an amount of money you contributed and already paid taxes on - in your retirement funds, then you'll use one of two methods (Simplified method or General Rule) to determine the taxable amount on this distribution which would be less than the amount in box 2a. Once your basis is used up using one of these methods (you've recovered all the original money you contributed after taxes), you will start using the taxable amount in box 2a from then on. So, if you used the taxable amount in box 2a last year, then you'll probably continue using it this year.
Take a look at your 1099-R from last year, and see if this is the taxable amount that was used on your tax return last year. Generally, the taxable amount would be on line 16b of your 2019 1040. If you used a lesser amount then box 2a, you should probably select "The amount in box 2a was NOT used as the taxable amount."
If you know that you will not use the Simplified Method or General Rule, select "The amount in box 2a was used as the taxable amount."
