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Retirement tax questions
This is not likely to change at least in the near term. However TurboTax is constantly looking for ways to improve its products and change in this area may occur in the future. For now, in TurboTax using the "W4 and Estimated taxes" topic, pension and annuity distribution income is netted in the "Other income" category. However, the 1099-R withholding is not automatically accounted for and must be entered.
According to the IRS for withholding purposes pension and annuity distributions are treated as wages. Here is an IRS link for more information.
When figuring estimated taxes for the following tax year, in the page titled "Enter your 2024 W-2 Wage Information" you should add any expected 1099-R withholding to one of the expected withholding boxes. You could adjust the other income box later in the interview, if applicable, for any expected 1099-R distribution changes.
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