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KenRod2
Level 2

How to handle Survivor Benefits from Civil Service Retirement System?

Hi.  My father passed away in 2018 and my mom had a professional do her 2018 taxes.  I'm now trying to do her 2019 taxes.

 

My father was an employee in the Government Civil Service Retirement System (CSRS).  The 1099-R has:

  box 1: 39372.00

  box 2a: UNKNOWN (yes, it has "UNKNOWN")

  box 4: 1497.60

  box 5: 2920.05

  box 7: 4 - Death-Benefit

  box 9b: 85633.00

There is not a box 2b, so I don't know if I should "check the box" for Taxable amount not determined.

 

Does anyone know if the full amount in box 1 is taxable?  If not, how can I calculate or have TurboTax calculate the taxable amount?  How do boxes 5 and 9b enter the computation?

 

Thank you.  Any help would be appreciated!

1 Best answer

Accepted Solutions
macuser_22
Level 15
Intuit Approved!

How to handle Survivor Benefits from Civil Service Retirement System?

That is probably a CSF 1099-R from OPM.

OPM violates the 1099-R rules by writing "helpful" information in the box rather than just the value or code like they are supposed to. OPM has done that for years and it causes more confusion than help. They put UNKNOWN in box 2a when it should be blank, and put "7 NONDISABILITY" in box 7 when is should only be "7", "1" or "2".

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount or the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

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 under My Account) 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

4 Replies
Opus 17
Level 15

How to handle Survivor Benefits from Civil Service Retirement System?

First of all, what is the money, what happened, and who is the payee named on the 1099?

 

The payee is your mom or your dad?  The amount was paid to her directly from life insurance?  From a pension?  From a 401(k)?

 

We need more information. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
KenRod2
Level 2

How to handle Survivor Benefits from Civil Service Retirement System?

Hi Opus17.  Sorry for not supplying complete info.

This 1099-R is a Form CSF 1099R and is for Mom's survivor benefits of Dad's OPM (Office of Personal Management) pension.  My Dad was a retired Civil Servant (I think he retired in 1999).  This 1099-R is for Mom's survivor benefits of Dad's pension.

Payer is Office of Personal Management Retirement Operations

Payee is my Mom

macuser_22
Level 15
Intuit Approved!

How to handle Survivor Benefits from Civil Service Retirement System?

That is probably a CSF 1099-R from OPM.

OPM violates the 1099-R rules by writing "helpful" information in the box rather than just the value or code like they are supposed to. OPM has done that for years and it causes more confusion than help. They put UNKNOWN in box 2a when it should be blank, and put "7 NONDISABILITY" in box 7 when is should only be "7", "1" or "2".

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount or the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

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 under My Account) 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

KenRod2
Level 2

How to handle Survivor Benefits from Civil Service Retirement System?

Thanks, macuser_22!  Yes, I now see on the left, typed sideways that this is a CSF 1099R.  I had chosen normal 1099-R incorrectly.  I think I'm on the right path now.  Thanks for the help!  (And wouldn't it be helpful if this were listed as Form: CSF 1099-R in the upper right where is only says Form: 1099-R?)

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