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Returning Member
posted Mar 5, 2021 11:54:44 AM

Can I delete pension distribution in the wage box to the pension box

0 2 339
2 Replies
Level 15
Mar 5, 2021 11:59:06 AM

Wait. Per the IRS,  Line 1 Wages include disability pensions shown on  Form 1099-R , if you haven’t reached the
minimum retirement age set by your employer.   If so, leave it there.

 

If however, you just typed the 1099-R in the wrong place, delete it from the W-2 section, and enter it here:

Federal > Wages and Income > Retirement.

Level 15
Mar 5, 2021 12:08:04 PM

If there is a code 3 in box 7 on yiur 1099-R form AND you are under the minimum age that you could have retired if you were still working for the company, then the distribution goes on line 1 as wages.

 

 

The tax is the same as it would be if it were on line 5, but it is an advantage to you to be on line 1 - it can qualify you for the EIC, or allow IRA contributions that would not be allowed if on line 5.