Death Benefit and taxability

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I have a 1099R which is a Survivor Annuity Payment. Field 2a says the taxable amount is UNKNOWN. I have been receiving this annuity since August 2023. How do I know the tax free amount previously recovered? What is the death benefit exclusion? I used TT last year but this seems so different? Thank you!

JamesG1

Alumni - Intuit

You may be reporting an Office of Personnel Management CSF-1099-R.

The tax free amount previously recovered is the difference between box 1 and box 2a on your 2023 and 2024 Federal 1040 income tax returns. The questions at the screen Annuity information will compute the amount of box 1 which is taxable.

Click the ? to the right of Death benefit exclusion for more information. It states (in part):

Death benefit exclusion

If you are the beneficiary of a deceased employee or former employee, the amount paid to you by (or on behalf of) an employer because of the employee's death may qualify for a death benefit exclusion of up to $5,000. It does not apply to distributions from IRAs.

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asonanislandAuthor

Level 2

Yes, this is an Office of Personnel Management CSF-1099-R.

So how do I exclude the $5000? Are you suggesting I don't need to report the first $5,000 of the gross distribution even though it is within box 1? The death didn't occur during work, it was after separation/retirement. I am receiving the annuity as part of the divorce proceedings. There was some federal tax withheld during the year because I was receiving a FERS supplemental annuity for part of the year until I aged out of it. I still receive the survivor annuity.

Thank you. I find this reporting very confusing.