A question regarding 1099-R asks if the distribution is through regular intervals. I say YES, but that never gets saved and is instead changed to NO. Does it matter?

[GeoffreyG]

That's actually a common user observation about TurboTax.  The way that the program works in the retirement section (and in many other sections of the program), after the user makes such a data entry, can be described follows.

When the user first goes through a TurboTax interview sequence,  some selections are made by default in the program.  In other words, there's a "base setting" for certain answers to some interview questions.  When a program user answers a question differently than the default setting for these interview questions (which can also sometimes be a "blank" answer, or just an empty checkbox or field), the TurboTax program does record that answer, and it saves the user's response in the program's memory.

However, when a user goes back through that same interview again (to look at or to verify their original answer if you will), the program will then "reset" itself again to the "base setting" and make it appear as though the user's response isn't being recorded properly . . .  when it previously had been saved.

Put differently, the very act of reviewing a TurboTax interview sequence can visually erase the evidence of previous answers input by the user.  This can lead to frustration and misunderstanding.  But the general solution is a simple one.  Simply answer the relevant tax questions correctly the first time, and then leave them as they are.

In the specific case of your pension payments, if you answer (once) that you received periodic payments for your particular 1099-R that you're entering, then rest assured the TurboTax program will save that answer . . . unless you later go back and review it through the interview (in which instance you should answer the periodic payments question again).

Thank you for asking this important question.

[plybelsat]

Taxpayer was employed as a Public Service Officer. The Pension Administrator paid $451.80 for health insurance with pre-tax dollars. Taxpayer received periodic payments.

If turbo tax is saving the appropriate answers, why is  Form 1040-SR 5B taxable income $904 lower instead of $541.80?

[SamS1]

It looks like its doubling the 451.80 ($452 X 2).  I would recommend deleting the 1099R and starting over.  After you have logged in and are in your return in TurboTax Online:

• Go to Search at the top of the screen.
• then enter Form 1099-R in the search box. 
• You will see a Jump To function that will take you to the 1099-R input screens. 
• There delete the 1099R in question by clicking on the trash can next to the form
• Then add a new 1099R and manually enter your 1099R.

At the financial services screens, click "Change how I enter my form" then "Type it myself"

Does the box 1 and box 2a amount on the 1099R include the $451.80 of healthcare benefits?  If it is included, then check the box you are a public service officer input screen and enter the Health Insurance Amount in the following screen.  This should decrease the amount of your taxable amount on line 5B.  

[plybelsat]

Box 2A is $451.80 less than Box 1

[plybelsat]

I deleted the 1099R and started over but the results are the same.  

[macuser_22]

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@plybelsat wrote:

Box 2A is $451.80 less than Box 1

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Then the plan administrator has already deducted if from you taxable income so you cannot deduct it again with the PSO deduction.