Why is TurboTax treating my military retirement an early distribution? I selected Box 7-Normal distribution as reflected on my 1099-R.

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Self Employed Online

Best answer by CherylW

Good. It's not being treated as an early distribution, no 10% penalty, so Turbo Tax treated your distribution correctly.

You're just being taxed on the distribution, not penalized.

CherylWAnswer

Level 11

Good. It's not being treated as an early distribution, no 10% penalty, so Turbo Tax treated your distribution correctly.

You're just being taxed on the distribution, not penalized.

jaypjay1Author

Level 2

Great info! Now I’m challenged with understanding why I was not taxed throughout the year. I am married filing jointly with 3 dependents - Claiming M-04 since retirement in 2001.

CherylW

Level 11

Generally, the more dependents you claim, the less they take out.

If you want more withheld from your check every pay period, claim fewer dependents.

jaypjay1Author

Level 2

Understood. The new tax plan has negatively impacted many...why not me too. Thanks so much for your assistance. Looking for lobbyists to advocate for no taxes for retired veterans!

CherylW

Level 11

If you are getting your retirement pay with a 7 in box 7 and you are over 59 1/2, then you shouldn't be penalized the 10% but you will be taxed on that amount.

The amount of your 1099-R should be reported on line 4b. If you've been penalized, it'll show up on line 59, Schedule 4, which gets carried to line 14, Form 1040.

To look at your 1040:

1. Go to Tax Tools on the left-hand side.

2. Go to Tools.

3. Go to View Tax Summary.

4. Click Preview my 1040 from the left-hand side.

If you see an amount on line 14, Form 1040, post back to this thread.