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KATI16
New Member

Had retirement loan - missed payment - got 1099R. overnite late payment to satisfy payment.Have letter saying disregard previous letter. do I enter on return

 
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macuser_22
Level 15

Had retirement loan - missed payment - got 1099R. overnite late payment to satisfy payment.Have letter saying disregard previous letter. do I enter on return

Code L is a deemed distribution taken to satisfy the loan.   Yes you must enter it and it is probably fully taxable, the same as if you took a distribution and then used the money to pay the loan.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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3 Replies
macuser_22
Level 15

Had retirement loan - missed payment - got 1099R. overnite late payment to satisfy payment.Have letter saying disregard previous letter. do I enter on return

What code is in box 7?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
KATI16
New Member

Had retirement loan - missed payment - got 1099R. overnite late payment to satisfy payment.Have letter saying disregard previous letter. do I enter on return

on the 1099R the code in box 7 is L.  there was no distribution of this money and I payed the entire loan in full.
macuser_22
Level 15

Had retirement loan - missed payment - got 1099R. overnite late payment to satisfy payment.Have letter saying disregard previous letter. do I enter on return

Code L is a deemed distribution taken to satisfy the loan.   Yes you must enter it and it is probably fully taxable, the same as if you took a distribution and then used the money to pay the loan.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

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