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New Member
posted Jun 3, 2019 1:57:05 PM

I am taking life expectancy payments from my TSP account and when I enter the information from the 1099R into turbo tax it says "good news, you dont owe anything for tax"

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1 Best answer
Level 15
Jun 3, 2019 1:57:12 PM

>  it says "good news, you dont owe anything for tax"

No, that's not what it says.  Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty.  You still owe ordinary income tax on the distribution.

6 Replies
Level 15
Jun 3, 2019 1:57:07 PM

Is it additional tax for the 10% early withdrawal or showing the whole amount as non-taxable?

Level 15
Jun 3, 2019 1:57:08 PM

Is there an amount in box 2a?

New Member
Jun 3, 2019 1:57:11 PM

I am exempt from the 10 percent because I was federal law enforcement, but I don't believe I took anything out for income tax?

Level 15
Jun 3, 2019 1:57:12 PM

>  it says "good news, you dont owe anything for tax"

No, that's not what it says.  Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty.  You still owe ordinary income tax on the distribution.

New Member
Jun 3, 2019 1:57:13 PM

However, it doesn't show anything withheld on the 1099R

Level 15
Jun 3, 2019 1:57:14 PM

You need to contact OPM online and adjust the retirement to have taxes taken out. Otherwise you will have the same problem next year.