CSF 1099-R Survivor Annuity Suddenly Has Errors

Forum|Forum|5 years ago
March 19, 2021
8 replies
39 views

One of the tax documents I have to enter is a CSF 1099-R Survivor Annuity. Line 1 on the form is the “Gross distribution” and has an amount shown on that line. However, Line 2a, “taxable amount”, is blank. Since there are “Total Employee Contributions” on Line 9b, the “Simplified Method” must be used to determine how much of the “gross distribution” is taxable and how much is simply a distribution of the employee’s own contributions and, therefore, tax-free. This calculation had worked flawlessly since this annuity began in 2002. And it worked this year up until this last TurboTax software update on Thursday, 3/18/21. Now TurboTax says that the entire gross distribution on Line 1 is not taxable. This is not correct. I tried deleting the CSF 1099-R and then reentering it but no luck. Same wrong answer. No matter what I seem to do, I cannot get TurboTax to calculate and apply the “Simplified Method” to this pension annuity like it used to.

Anybody else seeing this? Is TurboTax aware that this error now exists when it didn’t before?

TurboTax Home & Biz Windows

macuser_22

Alumni - Champ

@Thomas S wrote:

One of the tax documents I have to enter is a CSF 1099-R Survivor Annuity. Line 1 on the form is the “Gross distribution” and has an amount shown on that line. However, Line 2a, “taxable amount”, is blank. Since there are “Total Employee Contributions” on Line 9b, the “Simplified Method” must be used to determine how much of the “gross distribution” is taxable and how much is simply a distribution of the employee’s own contributions and, therefore, tax-free. This calculation had worked flawlessly since this annuity began in 2002. And it worked this year up until this last TurboTax software update on Thursday, 3/18/21. Now TurboTax says that the entire gross distribution on Line 1 is not taxable. This is not correct. I tried deleting the CSF 1099-R and then reentering it but no luck. Same wrong answer. No matter what I seem to do, I cannot get TurboTax to calculate and apply the “Simplified Method” to this pension annuity like it used to.

Anybody else seeing this? Is TurboTax aware that this error now exists when it didn’t before?

I do not know of any change to this interview.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Thomas SAuthor

Level 4

Yes, I did all that. Answered all those questions just like you indicated. Not working now.

Remember, I said this has been working properly since 2002. And I have been using TurboTax all those years. When I started my 2020 return, I read in the data from my 2019 TurboTax return. After I entered in all my 2020 tax documents (including this CSF 1099-R) everything tied out and the simplified method was being used for this annuity. I had a $573 refund and I was just waiting for TurboTax Form 2210 Part IV to be fixed before I e-filed. After the latest software update, my return now says I have a refund of $1,631. And yet I didn't touch or change anything. Just did the software update and then opened my return. Traced the refund increase to the problem I mentioned above in this thread.

To test things, I copied my TurboTax file over to a "test" file. Then went into the test file, deleted the CSF 1099-R and then reentered it. No luck. Same wrong answer. This used to be OK. Line 2, "taxable amount", on the form actually says "unknown" instead of being blank. I think it says that every year. However, when you enter the data for this form, you cannot type in "unknown" for line 2. It's not numeric. Also, cannot leave line 2 blank or TurboTax fills it in with whatever is on Line 1. Must enter a 0 (zero) for line 2. I took a quick look at my 2019 return and I had to enter a 0 for line 2 on that one also.

I really think a programming change in the last software release is causing this not to work now. However, if you want to give you the exact details of how I entered everything I can. Maybe you can mimic the error.

macuser_22

Alumni - Champ

@Thomas S wrote:

Yes, I did all that. Answered all those questions just like you indicated. Not working now.

Remember, I said this has been working properly since 2002. And I have been using TurboTax all those years. When I started my 2020 return, I read in the data from my 2019 TurboTax return. After I entered in all my 2020 tax documents (including this CSF 1099-R) everything tied out and the simplified method was being used for this annuity. I had a $573 refund and I was just waiting for TurboTax Form 2210 Part IV to be fixed before I e-filed. After the latest software update, my return now says I have a refund of $1,631. And yet I didn't touch or change anything. Just did the software update and then opened my return. Traced the refund increase to the problem I mentioned above in this thread.

To test things, I copied my TurboTax file over to a "test" file. Then went into the test file, deleted the CSF 1099-R and then reentered it. No luck. Same wrong answer. This used to be OK. Line 2, "taxable amount", on the form actually says "unknown" instead of being blank. I think it says that every year. However, when you enter the data for this form, you cannot type in "unknown" for line 2. It's not numeric. Also, cannot leave line 2 blank or TurboTax fills it in with whatever is on Line 1. Must enter a 0 (zero) for line 2. I took a quick look at my 2019 return and I had to enter a 0 for line 2 on that one also.

I really think a programming change in the last software release is causing this not to work now. However, if you want to give you the exact details of how I entered everything I can. Maybe you can mimic the error.

I see what you mean it does auto-fill box 2a with box 1, however that does not seem to matter when I enter the simplified method, the current tax is calculated and goes on the 1040 line 5b as it should. A blank box 2a is deemed to be the same as box 1 unless it has a lower value in it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**