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If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages until you reach minimum retirement age. (Minimum retirement age is generally the age at which you can first receive a pension or annuity if you aren’t disabled)
so i am doing my mother inlaw taxes this year. she get a annuity from office of personnel management, retirement operations from the united states postal service. she received a 1099-r. her age is 90 year olds
box1 gross distribution: $29532.00
box2a taxable amount: UNKNOWN
box4 fed income tax withheld: $1784.64
box5 employee contributions/
designated ROTH contributions
or insurance premiums :$3305.57
box7 Distrubution codes: 3-DISABILITY
box9b total employee contributions: $24722.00
does she have to pay taxes on this? the software is asking me to Enter the amount on 2a but there is no amount but the words UNKNOW thanks
It depends. The taxable amount must be determined from her contributions and how much she used in the past. Follow the screen prompts and choose the simplified method. This may be a CSA-1099R since it's a government pension. If you do not have last year's return and you don't know what should be taxable then the full amount must be added to Box 2a.
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