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Are you my sure I do not pay taxes if my 1099R Box # 7 is marked 3-Disability??

 
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1 Reply
HelenaC
New Member

Are you my sure I do not pay taxes if my 1099R Box # 7 is marked 3-Disability??

Disability income is considered taxable income if the premiums for the disability insurance were paid by your employer, or if you paid for the premiums with pre-tax dollars on your paycheck (If you are not sure, check with your HR department).  

  • Disability income is non-taxable if you paid the insurance premiums with after-tax (out of pocket) dollars

  • If you and your employer jointly paid the premiums, only the disability amount covered by your employer's payments are taxable.

 To enter your 1099-R in TurboTax:

  1. Click on Federal > Wages & Income.
  2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R).  [See Screenshot #1, below.]
  3. If you've already entered one (or more) 1099-Rs, you will see a screen Your1099-R Entries.  Click on the link Add Another 1099-R.  [Screenshot #2]
  4. If you haven't already entered a 1099-R, you will see the screen, Your 1099-R. Click Yes and then Continue.
  5. You can either import your 1099-R or click on the I'll type it in myself box.
  6. If you select to enter the information yourself, continue through the screens, answering the interview questions.

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