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How do i tell Turbotax that my pension is an accidental disability pension and does not pay state or federal taxes?

 
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2 Replies
SharonD007
Expert Alumni

How do i tell Turbotax that my pension is an accidental disability pension and does not pay state or federal taxes?

For a disability pension, your 1099-R should have code 3 in box 7 for the distribution code.  This code lets TurboTax know that your pension in not taxable.  

 

Refer to TurboTax Help article What do all the codes in Box 7 of the 1099-R mean?

 

 

 

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How do i tell Turbotax that my pension is an accidental disability pension and does not pay state or federal taxes?

Thank you. I did enter "3" for disability pension but the next few questions made me wonder if the system realized it. Would be nice if the very next screen acknowledged that the pension may be tax free.

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