I'm retired and receive a disability pension from my employer (I receive a 1099-R) each year. The distribution code listed in box 7 of my 1099-R is "3" (disability). I am under the minimum retirement age and the past several years TurboTax has put my Gross Distribution on Form 1040 in box 1 (wages, salaries, tips, etc) because I am under minimum retirement age. This year it is adding it to box 1H (other earned income) and telling me I cannot file electronically because there isn't taxable income.
The instructions on the back of the 1099-R says: ".... if you haven't reached minimum retirement age, report your disability payments on the line for Wages, Salaries, Tips, etc, on Form 1040....."
IRS explanation of form 1099-R box 7 says:
Code 3 is for a disability pension. If the taxpayer is under the minimum retirement age for the company he retired from, then check the box under Rollover or Disability that says "Check here to report as wages on Form 1040."
TurboTax does not offer this as an option and therefore my Gross Distribution amount is not being placed in the correct area on Form 1040.
