The OPM distribution is taxable, although not the entire amount. Code 4 is not relevant in determining how much is taxable, unfortunately. It is the employee contributions amount in box 9b that will determine how much of the OPM withdrawal is taxable.
Please be sure to enter OPM 1099-R as CSF1099-R (as a survivor) and not as a regular 1099-R. The program will guide you through questions on OPM distribution:
1. Federal Taxes
2. Wages & Income
3. Scroll
down and select IRA, 401(k), Pension Plans.
On the screen Tell Us Which 1099-R you Have please
be sure to select CSF-1099-R Civil Service survivor
annuity. Select Continue and
you will see automatically filled in information on OPM. Select Continue again and you will see Enter Annuity Information screen. You will
be prompted to data entry and additional questions about your annuity. Please
be sure to enter all information – including your contributions- exactly as it
appears on the form. This will ensure proper calculation of the taxable amount.
