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I am taking life expectancy payments from my TSP account and when I enter the information from the 1099R into turbo tax it says "good news, you dont owe anything for tax"
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June 3, 2019
1:57 PM
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Retirement tax questions
Is it additional tax for the 10% early withdrawal or showing the whole amount as non-taxable?
June 3, 2019
1:57 PM
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Retirement tax questions
I am exempt from the 10 percent because I was federal law enforcement, but I don't believe I took anything out for income tax?
June 3, 2019
1:57 PM
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Retirement tax questions
> it says "good news, you dont owe anything for tax"
No, that's not what it says. Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty. You still owe ordinary income tax on the distribution.
No, that's not what it says. Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty. You still owe ordinary income tax on the distribution.
June 3, 2019
1:57 PM
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Retirement tax questions
However, it doesn't show anything withheld on the 1099R
June 3, 2019
1:57 PM
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Retirement tax questions
You need to contact OPM online and adjust the retirement to have taxes taken out. Otherwise you will have the same problem next year.
June 3, 2019
1:57 PM