Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 3:03:33 AM

How do I determine if a pension is taxable or not?

its distribution code 7

0 1 1474
1 Best answer
Intuit Alumni
Jun 6, 2019 3:03:35 AM

A form 1099-R with a distribution code 7 indicates that your pension income was classified as a normal taxable distribution. Most pensions are 100% taxable. The only time retirement income isn't taxable is when a taxpayer puts his or her own after-tax money into growing the funds. If you have an employer-provided pension that was funded with pre-tax money, then it is taxable.

1 Replies
Intuit Alumni
Jun 6, 2019 3:03:35 AM

A form 1099-R with a distribution code 7 indicates that your pension income was classified as a normal taxable distribution. Most pensions are 100% taxable. The only time retirement income isn't taxable is when a taxpayer puts his or her own after-tax money into growing the funds. If you have an employer-provided pension that was funded with pre-tax money, then it is taxable.