If your 1099-R has UNKNOWN as the taxable amount, you probably have a CSA 1099-R. If you have not indicated that this is a CSA form, go back into TurboTax in the 1099-R section and enter your CSA 1099-R, making sure to indicate before you enter the form that it is a CSA 1099-R. Then leave the taxable amount box blank and TurboTax will guide you through the interview to determine the taxable amount. Make sure to delete the incorrect 1099-R.
Either way, if Box 2a reads unknown, leave it blank and TurboTax will provide you with follow-up questions.
Please feel free to post any additional details or questions in the comment section.
What is the nature of your spouse's pension or annuity?
The IRS has rules for using the Simplified Method and the General Rule. They may be found in IRS Publication 575 and Publication 939.
Who must use the Simplified Method
You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions.
(1) You receive your pension or annuity payments from any of the following plans.
(2) On your annuity starting date, at least one of the following conditions applies to you.
Who can't use the Simplified Method
You can not use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. See General Rule, later.
If your 1099-R has UNKNOWN as the taxable amount, you probably have a CSA 1099-R. If you have not indicated that this is a CSA form, go back into TurboTax in the 1099-R section and enter your CSA 1099-R, making sure to indicate before you enter the form that it is a CSA 1099-R. Then leave the taxable amount box blank and TurboTax will guide you through the interview to determine the taxable amount. Make sure to delete the incorrect 1099-R.
Either way, if Box 2a reads unknown, leave it blank and TurboTax will provide you with follow-up questions.
Please feel free to post any additional details or questions in the comment section.
I did what you said by not leaving the box2a blank but Turbo tax automatically input the same gross distribution amount. Mine 1099 is csa for disability retirement. could i put $0 in box2a while filing tax?
No you will not put in a "0" Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R. After you enter the 1099R in the screen, turbo tax will ask additional questions about your 1099R to determine how much of that distribution is taxable.
I don't see a place to Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R. Where/how would I do that?
I logged into my online account and wrote down the steps.
Enter a 1099R under
Federal Taxes on left
Wages & Income at the top
Then scroll way down to Retirement Plans and Social Security
Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start
Don't type the bank name or try to import it.
At the bottom pick - Change How I enter my Form
Then on the next screen pick - I'll Type it in Myself
If you are filing a Joint return be sure to pick which person it is for.
Next screen is Who gave you a 1099R? Pick the right box.
I don't see that screen. Are you using the online version? I bought the CD...
That was for the online version but Desktop should be the same. I'll make screen shots from my Desktop program later.
Thank you MichaelDC for this answer.
Still, I need help.
I chose the CSA 1099-R and then filled it out and left box 2a blank and continued to where I chose yes for the taxable annuity amount was used as the taxable amount.
When I do this TT shows Taxable amount as $0 on box 5b on the form 1040 and on box 2a on the Form (CSA)1099 R.
What would you suggest.?
Thank you in advance for this and for all the many questions you have answered here.
John
The pension income from Form CSA-1099R uses the Simplified Method for calculating the taxable portion of the amount each year. It's important to answer all of the follow-up questions such as 'Yes' to periodic payments.
Hi DianeW777
Thank you for your prompt and thorough reply. I am so grateful for doing this for us! This looks like the right answer.
When it asks for plan cost at annuity starting date is that the cost on the day the annuity began originally so many years back? Or is it, 1 Jan 2021? The original start date was in 1995.
Many thanks!
John
Here are the answers to your questions.
Question: When it asks for plan cost at annuity starting date is that the cost on the day the annuity began originally so many years back?
And you definitely use the 1995 starting date - the first month you began receiving this pension.
Again, many thanks for sharing your expert knowledge and so quickly...last question:
Is this yes or no to this question?
I am under retirement age for this plan.
Seems like the answer would be no....but I am not sure. Sorry to take up even more of your time.
It is probably no.
For federal employees the Minimum Retirement Age (MRA) ranges from 55 to 57 if you are not disabled. Check the chart below for a more exact answer.
No, your must file your 2020 tax information only on your 2020 tax return.
Likewise, you need to report only 2021 W-2s, 1099s, etc. on your current tax return.
If you did not file your tax return in 2020, you can file now, but you need to use 2020 software. Click here to buy the 2020 TurboTax program.
No, your must file your 2020 tax information only on your 2020 tax return.
Likewise, you need to report only 2021 W-2s, 1099s, etc. on your current tax return.
If you did not file your tax return in 2020, you can file now, but you need to use 2020 software. Click here to buy the 2020 TurboTax program.
Yes the answer is no. Thank you again for all the help here. I hope you get double karma for all you do.
Thanks so much.
I am so thankful for this thread! Now, I am right were you all ended, except in the simplified method it will not accept the date of 6/1/2021 as the first distribution date. It says my husband can't use this method because he is only 50.
What is the nature of your spouse's pension or annuity?
The IRS has rules for using the Simplified Method and the General Rule. They may be found in IRS Publication 575 and Publication 939.
Who must use the Simplified Method
You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions.
(1) You receive your pension or annuity payments from any of the following plans.
(2) On your annuity starting date, at least one of the following conditions applies to you.
Who can't use the Simplified Method
You can not use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. See General Rule, later.
The "unknown" from CSR 1099-R was chosen. The next guided questions of RMD is how much of the $53,364.00 was a RMD?
Your entire distribution amount is RMD, assuming you have passed the age for the required minimum distributions.
All retirement accounts, even pensions and annuities, must meet the RMD requirements. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022). See this IRS webpage for additional information on RMDs.
Please also see this thread for another discussion of this specific issue.