@stephanimorris02 wrote:
Age 45 at the time the taxes were done
Then where do you see anything on your tax return at all?
If you are age 45 then that is under normal retirement age so a code 3 1099-R with a zero in box 2a will not appear anywhere on a tax return since there is nothing to report.
I still suggest that you talk to the trustee of the plan to confirm that is should not be taxable. Most disability pay that I know of is fully taxable as ordinary income. (particularly since box 2b is checked). The IRS probably believes that it is taxable which is why you received the letter. If your circumstance actually makes it not taxable then I recommend getting a letter from the plan trustee stating that so you can use the letter to answer (dispute) the IRS letter.
(Having zero in box 2a and box 2b checked is inconsistent. Box 2b means that the issuer could not determine the taxable amount, but zero in box 2a says that they *did* determine the amount. It cannot be both. The 1099-R instruction state that if box 2b is checked then box 2a must be BLANK - not zero unless it is an IRA which this is not.).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
