I have a 1099-R box 7 contains a 3 for disability, TT Deluxe 2015 puts the income in wages, salaries & tips vs box 12a pensions & annuities on 1040A, is that correct?

I Know I qualify for the exemption regarding the 10% penalty for early distributions, but am questioning why 1099-R amount was added to wages vs pensions and annuities

1552

1 Best answer

New Member

Jun 4, 2019 11:34:51 PM

If y ou receive a pension distribution because of disability and have not reached the minimum age at which you could retire, the distribution is reported as "Wages".

I've attached two screen shots that will show you how this is determined by the TurboTax program.

New Member

Jun 4, 2019 11:34:51 PM

If y ou receive a pension distribution because of disability and have not reached the minimum age at which you could retire, the distribution is reported as "Wages".

I've attached two screen shots that will show you how this is determined by the TurboTax program.

New Member

Jun 4, 2019 11:34:53 PM

Excellent. Very helpful. Thank you for the confirmation.

Level 3

Jun 4, 2019 11:34:54 PM

In addition, your pension distribution which is now classified as "wages" becomes earned income, which in turn MAY qualify you for an earned income tax credit (EITC).

New Member

Jun 4, 2019 11:34:55 PM

Which can be a good thing!

Level 2

Jun 4, 2019 11:34:57 PM

Thank you!! This explains the rationale. Thumbs up

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I have a 1099-R box 7 contains a 3 for disability, TT Deluxe 2015 puts the income in wages, salaries & tips vs box 12a pensions & annuities on 1040A, is that correct?