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TurboTax 2021 treatment of pension income when box 2b is checked
On our 1099-R from a qualified pension plan, box 2a is blank and box 2b (Taxable amount not determined) is checked. The whole amount (box 1) should be taxable, but the program seems to think it's an annuity because we got regular (monthly) payments from it. It asks "Which method did [we] use to figure the taxable amount of this annuity? Simplified method or General rule?" A pension is NOT an annuity, at least from the recipients standpoint! At any rate, filling in the rest of the "Annuity Information" concludes with it saying the taxable amount is $0, which is, of course, not correct.
This is different from TurboTax 2020, which understood that as a pension with box 2b checked, it is entirely taxable.
‎February 4, 2022
12:50 PM