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Retirement tax questions
You could not report the form 1099-R on your tax return, or leave the box 2(a) entry empty. Either of those two options could result in the IRS suggesting a correction to your tax return in the future by assessing additional tax. You could respond to their proposed assessment with an explanation as to why you didn't report the income and that may resolve the issue.
You could also mail in your return with a statement attached explaining why you didn't report the form 1099-R or reported it differently than the way it was entered on the form. But that may not make a difference.
A third option would be to enter a negative adjustment to income to cancel out the pension income. This is how you would do that in TurboTax:
Go to the Wages and Income section of TurboTax
- Choose Less Common Income
- Choose Miscellaneous Income, 1099-A, 1099-C
- Choose Other reportable Income
- Enter a description for the adjustment and the amount as a negative number
[Edited 3/2/2022 at 5:05 PM PST]
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