Federal Retirement CSA 1099R Taxable vs Tax Free amount

[MommieG]

I am former federal employee- retired.  I received a Form CSA 1099R from OPM for two annuity payments post retirement in 2025.  The taxable amount field (2a) shows UNKNOWN, and the federal tax field (4) shows a dollar amount.

My retirement booklet says that I have already paid Federal income tax on my retirement contributions and provides a total dollar amount. It also says that  I am entitled to receive an amount equal to those contributions as "tax-free income".  IRS Simplified General Rule.  It also shows a "specific dollar amount" that is tax-free for each monthly payment. 

Question - Do I use that "specific dollar amount" that is tax-free and multiply it by the "number of checks I have received" (2 checks) and subtract if from the gross distribution field (1) and put this dollar amount into the taxable amount field (2a)?

Appreciate your thoughts.

[DaveF1006]

Here are the complete steps for entering, although you may have started this already.

1. Go to Federal > Wages & Income. 
2. Scroll down to Retirement Plans and Social Security and click Show More.
3. Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
4. Be sure when it asks the type of 1099 R, indicate it is a (CSA 1099-R) so the annuity questions will populate in your interview.

2. Enter the Payer Information

1. When asked "Did you get a 1099-R?", click Yes. 
2. On the "Who gave you a 1099-R?" screen, select Office of Personnel Management (CSA 1099-R). This is a specific form type in TurboTax that handles OPM's unique formatting.
3. Enter the details exactly as they appear on your form:

• Box 1 (Gross): Enter the full amount.
• Box 2a (Taxable Amount): Leave this BLANK. Do not type "Unknown" or your calculated amount here.
• Box 2b: Check the box that says "Taxable amount not determined".
• Box 4 (Federal Tax): Enter the dollar amount shown.
• Box 9b (Total Employee Contributions): Enter the total dollar amount of your contributions from your retirement booklet (this is your "plan cost").

3. Trigger the Simplified Method Worksheet

After you click Continue, TurboTax will ask a series of follow-up questions to calculate the tax-free portion for you:

1. Was this a periodic payment? Select Yes.
2. Did you start getting payments in 2025? Select Yes.
3. Let's figure out how much is taxable: Select the option that says "I need to figure out how much of this money is taxable."
4. Enter Annuity Information: * Enter your Annuity Start Date.
5. Enter your Plan Cost (the same amount you put in Box 9b).
6. Enter the number of months you received payments in 2025 (in your case, 2).
7. Enter your age on the date the annuity started.

4. Verify the Results

Once you finish the interview, TurboTax will show you a summary.

1. The Taxable Amount it calculates should match the "Gross minus (monthly tax-free amount x 2)" logic you described.
2. To see the math, you can go to Tax Tools > Tools > View Tax Summary > Preview my 1040.
3. Line 5a should show your Gross, and Line 5b should show the lower, taxable amount.

[MommieG]

Thanks so much for this information.  The taxable amount is close to my figures, about $23 less.

When I completed the income section, turbo tax asked me to review this 1099R, make sure box 1 (gross amount) and box 2 (taxable amount) are correct. The taxable amount is blank per the instructions below. 

Do i need to put this "taxable amount" into 2A in turbo tax, or just leave it alone?

Thanks for you assistance.

[Karis_F · Accepted solution]

You can leave the 1099-R entry for Box 2a as it appears on the form itself, which is blank. 

You have calculated the taxable amount of the distribution by answering the follow-up questions about your retirement plan, and that amount will be carried forward to Line 5b of your Form 1040.