Retirement tax questions

TurboTax Online will use the simplified method to determine the taxable portion for box 2a of your 1099-R.   Presume that:

• Monthly payments were received,  
• Payments started in 2022 (more about this later), and 
• That box 7 is code 7.

You will need to know:

• The amount of the employee contributions (should be in box 5),
• The date the annuity started,
• The number of months that payments were received in 2022, 
• The age of the recipient when the annuity started,
• The age of other beneficiaries (if there are any), and 
• Was the recipient under the retirement age for the plan.

Follow these steps:

• At the screen Who gave you a 1099-R, select Financial Institution or other provider (1099-R).
• At the screen Any Periodic Payments? select Yes, got regular payments from this retirement account.
• At the screen Payment Start Year select Yes started getting payments in 2022.
• At the screen Let’s figure Out How Much is Taxable, select I need to figure out how much of this money is taxable.
• At the screen Enter Annuity Information enter required information.  Plan Cost should be in box 5.
• At the screen Enter Ages enter required information.

View Federal 1040 tax return line 5a and 5b at Tax Tools / Tools / View Tax Summary / Preview my 1040.

Entering the Payment Start Year as 2022 will give you an answer for a taxable amount.  The taxable amount is likely to change if you go back and report income for previous years because you will be reporting a Tax-Free Amount Previously Recovered.

However, you may want to think about:

• whether you need to amend prior year tax returns, 
• whether you are going to amend prior year tax returns, 
• who will amend prior year tax returns, and 
• how many years you would go back in amending tax returns.  

You would be amending state and Federal tax returns.  

You may want to reach out to a local professional for assistance.

A lot to think about.  Best wishes.

@lynbou1