This is the first time I have done a tax return for my brother, a retired firefighter. His pension Form 1099-R shows the same amount of distribution in box 1) Gross Distribution and 2a Taxable Amount. Box 5 Insurance Premiums is blank. The IRS/SEP/SIMPLE plan box is not checked. The retirement department sent a letter that explained that they showed the taxable amount the same as the gross distribution because everyone's tax situation is different. They did provide the total premium amount that was deducted from his pension check. When I go through TurboTax Deluxe, it asks if medical payments were deducted from my check and paid directly by the plan administrator to the insurance company. I answer "Yes" and then it prompt for a dollar amount of the premiums paid. If I enter the correct amount that was deducted from my check and go to the next page it asked if the pension was a qualified plan which it was. Then is asks if he received pension distributions prior to 2020, which he did (2012). Then asks if the amount in box 2A was used as the taxable amount. I answered yes because that is how the Form 1099-R was filled out. If I go through the federal tax review it tells me there is an error. What it is doing is doubling the amount I entered for the insurance premiums which turns out to be $3500 ($1750 X 2). Why is it doing this? If I go back and leave the box for the amount of premiums paid blank ($0) then it shows up correctly on the tax return by reducing the taxable amount by the amount of the insurance premium actually paid. What I can't figure out is how it knows what the amount of premiums paid if I don't enter any amount.
If I enter "No" when asked if the amount in box 2A was used as the taxable amount it takes me to a new section with tells me that I must use the "General" of "Simple Method" ??????
I must be answering something wrong on the questions, but I can't figure out what I am doing.
