When your Form 1099-R box for "Taxable amount not determined" is not checked, you generally have two methods to calculate the taxable amount of your annuity payments: General method and Simplified method.
General method: Use it if you want to calculate the taxable part by itemizing the investment in the contract and using detailed IRS worksheets.
Simplified method: This is often used if your annuity starting date is after 1997 and your payer didn't provide the taxable amount in box 2a. It uses IRS tables to make the calculation easier.
If your 1099-R doesn't indicate "taxable amount not determined," you typically select the General method unless IRS rules or your annuity specifics suggest the Simplified method.
To enter annuity information and choose the taxable amount method in TurboTax when your 1099-R does NOT have the "Taxable amount not determined" box checked, follow these steps:
1. Go to the Wages & Income section.
2. Find and select IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Enter your 1099-R data exactly as shown on your form.
4. When asked about the taxable amount method, choose General Method since your taxable amount is already determined on the form.
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