Retirement tax questions
What distribution code is reported in Box 7 of the IRS form 1099-R? Please clarify.
You may need to delete the 1099-R entry and re-enter the information by hand to allow you to advance. Click the Delete trashcan to the right to remove the 1099-R. Click on Add another 1099-R to re-enter the 1099-R.
TurboTax Online can 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, and
- That box 7 is code 7.
You will need to know:
- The amount of the employee contributions (may 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 may 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.
