1099-R Inherited

[Nivek5]

My wife inherited, we assumed an annuity, from a distant aunt. She got a small amount over several months, totaling about $800. Now we've gotten a 1099-R. I've entered into Turbo Tax but it shows up as a retirement withdrawal. Neither of us is near retirement age. Anyway...I finished Federal and now I'm on to the state return and its asking all kinds of questions we can't answer - what the source of distributions (401K or ?) etc. We have no information where this money came from - as the person is dead!

Three-year rule pension or 401(k) benefits
General rule pension or 401(k) benefits
None of the above

Right now I'm back in the Federal section trying to pick one of the above. I'm assuming its OK to choose #3??

[DianeW777 · Accepted solution]

Yes, you should choose number 3.  The other selections would apply to the decedent, but not your wife. The state return will depend on whether your state taxes pensions or death benefits.  Not all state do, but there are some states that treat it the same as the federal taxes.

[Nivek5]

Thanks!

This is in NJ which seems to treat it a little different than Federal.

[fanfare]

what is your distribution code Box 7 ? is IRA box checked?

[Nivek5]

Box 7 is D4

IRA box is *not* checked.

[Nivek5]

On my 1040 both line 5b and 8 are the same value. Is that normal or is it a duplicate?

[fanfare]

It's not normal.

Line 8 is for "other income".

report your 1099-R on Line 5.

@Nivek5 

[Nivek5]

Yes thanks for confirmation...On closer examination it was indeed being double-counted.