Federal Pension 1099R

[vasto7]

This is the first year I am entering a 1099R for my federal pension.  I am not sure if I am doing it correctly to have the program subtract the healthcare insurance premium from my income.   

My 1099-R has the following entries:

1. 45432

2a. 44895

4.  5828

5.  3413.76

7. 7-nondisablity

9b. 32202

14. 1500

Box 5 is the amount paid for insurance premium.  When I get to the scree below, should I enter an amount in the "I will specify..."  Should that amount be box 2a, or should it be the amount in 2a minus the amount in box 5.  The latter seems to give me the correct result in terms of AGI, where as when I put in the box 2a. value, my AGI seems to include the insurance amount.

[BillM223 · Accepted solution]

Box 1 is the total distribution for 2024. Box 2a is the amount that is taxable. This is calculated by the OMB because the OMB knows what your "basis" is in your pension, i.e., how many after tax dollars you contributed to your pension, which are returned to you over time.

This is good, because it saves you having to figure it out in the rest of the 1099-R interview.

"5.  3413.76" - if you were not a peace officer, then you would have to manually enter the 3,413.76 as a medical expense in Schedule A. If, however, you were a peace officer, then say so in the questions that follow in the 1099-R interview. Note that you cannot take a deduction of more than $3,000 in this case. But the other 413.76 could still be listed as a Medical Expense on Schedule A.

I see that you have 1,500 in box 14. Are there no entries in boxes 15 and 16? There should be.

OK, so far, so good. Any other questions?

[vasto7]

Box 15. MD/0363444

There is no box 16.

I am not a peace officer and I am not itemizing this year.  So I take it that the correct taxable amount  is 44895.  Thus, I will not get a reduction in my taxable income because of the healthcare premium subtracted from my pension.  Seems odd that healthcare premiums are pretax when you work, but post tax in retirement.  

Thanks for your response.

[BillM223]

OK. Box 15 tells TurboTax that the amount withheld in box 14 needs to be sent to your Maryland return as taxes paid during the year. This is good.

Yes, your taxable income is $44,895.

You are not the first person to have wondered why the health insurance premiums are pre-tax when you are working and not in retirement (unless you were a peace officer). There have been a number of discussions here in the Community about this. You will have to take it up with your Congressional representative.

So, all sounds good on your 1099-R.