How do I calculate the taxable income on my 1099R. This is the a percentage of my ex's pension that I get per my divorce decree (I am not retired, he is).

Forum|Forum|7 years ago
June 7, 2019
14 replies
31 views

I receive a monthly payment from my former spouse's pension. He is over 60 and retired - I am 48 and not retired. The 1099R I received has "Unknown" as the Taxable amount. I have not withheld any taxes from these payments, although $150 of my monthly disbursement is applied to my survivor benefit. I am not sure how much of the amount is taxable - and/or if I need to pay a penalty.

TurboTax Deluxe Online

Best answer by dmertz

Answered in the comments.

Lisa995

Alumni - Champ

whats the code in Box 7 of that 1099R?

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

lsb513Author

Level 2

7-NONDISABILITY

Lisa995

Alumni - Champ

Then no penalty applies, enter the 1099R as its shown, leave the box that says Unknown empty.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

lsb513Author

Level 2

I just realized that, on the side of the form, it says form CSA 1099R - does that make a difference?

Lisa995

Alumni - Champ

be sure you select CSA 1099R, not a regular 1099R or the boxes may not match up.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

lsb513Author

Level 2

I did...then it asks me "Tell Us the Taxable Amount Method" - either Simplified or General Rule? Not sure which to do. When I choose Simplified it asks me for the "Plan Cost"and "Tax-Free Amount Previously Recovered" - I assume those are both 0 since I did not contribute to this plan, my ex did? And when I do that, it says the entire amount is taxable and knocks my refund down about $2500.

Lisa995

Alumni - Champ

Ive tagged someone more familiar with retirement situations.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

Lisa995

Alumni - Champ

@dmertz is there an adjustment that needs to be made in this situation or is all of it taxable?

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

lsb513Author

Level 2

THANK YOU!

dmertz

Level 15

Only if your ex made after-tax payments to the plan would any portion of the distribution be nontaxable. With the pension split under a QDRO, your ex's after-tax basis, if any, generally would be split in proportion to the overall split and your share of that after-tax basis would be your Plan Cost. Since the payer doesn't seem to know if there is any after-tax basis in the plan, you would need to obtain that information from your ex.