OPM lists a taxable amount on box 2a. OPM calculated this amount based on the original annuity using the Simplified Method. Under this method a fixed amount of each monthly payment is tax free until you recover your contributions. However, turbo tax will calculate the amount using the Simplified Method Smart Worksheet. OPM will result in an age factor of about 310 payment months (~ 27 years) to recover the contributions. Turbo tax uses an age factor that results in 210 payments (~17 years) for recovery So, which calculation do /can you use?
