To calculate the taxable amount for your 1099-R with "unknown" in Box 2a, here are some steps:
Determine Taxable Amount:
- Box 1: This shows the total distribution amount, which is $78,036.
- Box 5: This shows the employee contributions or insurance premiums. If Box 5 is blank, use the total contributions amount ($124,157) to determine the non-taxable portion
Calculate Taxable Amount:
- Subtract the non-taxable portion (your contributions) from the total distribution.
- Example: If your total contributions are $124,157 and your distribution is $78,036, the taxable amount is calculated as follows:
- Taxable Amount=$78,036−$124,157=$0
- Since the contributions exceed the distribution, the taxable amount is $0
- Note: A plan participant may receive a distribution from a retirement plan because he or she became totally and permanently disabled. Even if received before the participant is age 59 ½, it is not subject to the 10% additional tax for early distributions, but must still be reported as income.
Entering in TurboTax:
- Open Your Return: Log in to TurboTax and open your tax return.
- Search for 1099-R: Use the search box (magnifying glass icon) at the top right, type "1099-R," and click on the "Jump to 1099-R" link
- Enter 1099-R Information: Enter the details from your 1099-R form. When asked about the taxable amount, enter the calculated amount (e.g., $0 if contributions exceed the distribution)
For more detailed guidance, you can refer to the
