CSA 1099R - Joint Annuity and entering ages of recipient and survivor beneficiary

[joabrady]

Turbo Tax Product I'm using is Turbo Tax Online Premium 2023.

Annuity start date was 01/01/2015.  I realized the Non-Taxable cost I have been recognizing is higher than OPM instructed upon retirement due to the below information.

Per IRS Publication 721, Part II:Simplified Method states to figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on age.  If annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, the number is based on your combined ages.

I did receive instructions from DaveF1006 Employee Tax Expert that

Screen 1 in Turbo Tax "Tell us about your joint annuity", the question is "Does this annuity cover more than one individual? Options are YES, more than one person or NO this annuity cover only recipient.  

Screen 2 in Turbo tax under Office of Personnel Management asks: how old was the Primary recipient and the youngest beneficiary? Then you add the ages.  

At this point the combined ages is used to figure the non-taxable cost.

I DO NOT FIND THESE QUESTIONS OR SCREENS IN THE TURBO TAX I AM USING

This is the final piece to finishing my tax return, please HELP me in that I do not find the above screens to enter the correct information of the OPM Annuity in Turbo Tax Online Premium 2023.

Thank you

[KrisD15]

If the 1099-R was entered in the section for CSR, you would get to a screen that states:

"Describe the Taxable Amount"

select "No, a different amount was taxable"

For "Tell Us the Taxable Amount Method" select "Simplified method"

Enter Annuity Information   and Continue

Next screen says "Tell Us About Your Joint Annuity"

select "Yes, this annuity covers more than one person"   and Continue

Next screen asks for both ages. 

If you did not see these screens, 

please return to wages & Income 

Retirement Plans and Social Security

IRA, 401(k), Pension Plan Withdrawals (1099-R)  START or UPDATE

Select EDIT for Office of Personal Management

Walk through the interview very carefully 

[joabrady]

Thank you so much KrisD15.  DaveF1006 also helped, but until I thought to leave box 2a blank I couldn't find what I needed.

I figured out the issue was when entering the CSA-1099R.

Based on OPM instructions to figure the non-taxable portion.  I took the monthly tax-free amount x 12 months, then deducted this amount from the Gross Distribution amount and entered this figure in 2a. Taxable amount.

This was incorrect.  This time I left box 2a blank, then Turbo Tax directed me to the steps you outlined below:

"Describe the Taxable Amount"

select "No, a different amount was taxable"

For "Tell Us the Taxable Amount Method" select "Simplified method"

Enter Annuity Information   and Continue

Next screen says "Tell Us About Your Joint Annuity"

select "Yes, this annuity covers more than one person"   and Continue

Next screen asks for both ages. 

Thanks again, I can now file my tax return.