Retirement tax questions
It depends. There is an action you can take because she did not have an unrestricted right to the payment made in December and you have proof that the money was automatically removed from her account in January. Below are instructions for her final tax return.
Your question about her final return. But what about it being taken back in 2025 and the fact that her income will be too high and a liability for tax for 2024 and reflected on her 2024 return?
- You can file the full 1099-R and then take a negative amount to remove the December payment. I would be inclined and advise you to enter the federal withholding exactly as it appears on the 1099-R. It is something you can deal with later should the OPM change it. In order for them to change it they would need to issue a corrected 1099-R. If they do do that, you can always send an amendment for 2024 at that time.
.TurboTax Online/Mobile:
1. Select Tax Tools > Tools (may have to scroll down)
2. Select Topic Search at the top > Type search term 1099r > Go
TurboTax Desktop:
1. Search (upper right) > type 1099r > Click the Jump to... link
To enter and remove the negative amount that was returned to OPM use the instructions below.
Other Miscellaneous Income:
- Sign into your TurboTax Online account
- Go to Tax Home (left panel) Income section (for TurboTax Desktop go to Income then continue)
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (----) and the amount as a negative (-100)
We are so sorry for your loss.
