I received my 1099-R - I am a retired police officer. I started getting early S/S and was told that I could make $17,???.00 before I would have to pay tax on any wages I received. I did work part time and did make almost $5,000.00. I received $20,???.00 from S/S but when I fill out all the info for my return, it is showing that $17,???. is taxable and the remainder is non taxable. This is not suppose to be since my 1099-R is not considered income (according to S/S office) it is only for IRS taxes. Have I missed a place in my filling out my return?
You have a slight mis-conception about what is involved there.
1) If you start collecting SS early, before the full-retirement age for SS, then SS will reduce the next year's actual monthly payout of SS benefits, if your work salary (or self-employment profit) exceeds ~$18.2k for 2020. So, after you file your 2020 taxes, SS will see that you "earned" ~$5k from part-timework, and they won't change next year's monthly benefits ... because it was only 5k. Your 1099-R doesn't affect that.
2) How much of your yearly SS income is "taxable" is an entirely different situation.
IF you only had SS during the year, and no work income, no 1099-R, no investment income...then none of the SS is taxed......but as you get more income of any other kind during the year, then some of the SS can become taxable....up to 85% of it. So yes, the 1099-R income does affect that. Apparently you've received enough other income such that your SS is getting taxed.
I was told by SS when I signed up that since my 1099-r was from a public service (police officer) that there would be no IRS tax on my SS, but only a change in my SS payment if I made to much money ie w2. So why is there a special question (yes or no) in turbo tax whether your 2099-r is for a public servant ie police officer.
The software asks that question, because it doesn't know if the 1099-R is for a Police officer... BUT, IF there are $$ in box 5 that went to health insurance, then up to $3000 of the distribution will not show up as being taxable income on the Federal 1040.
BUT the statement :
I was told by SS when I signed up that since my 1099-r was from a public service (police officer) that there would be no IRS tax on my SS, but only a change in my SS payment if I made to much money ie w2. .....
...you may have misheard...or the person you talked to at SS fumbled things in that part I underlined.
There is no such exemption in a Federal tax return for not including that 1099-R distribution as income for determining IF some of your SS is going to get Federally income-taxed (But I haven't thought about if it is a Disability pension...that might be different...box 7 would contain a code 3) . Some state tax returns will exempt it from the state income tax, but not the Feds.