Im retired on disability from the post office in 2016 and withdrew my thrift savings account, which is a voluntary retirement plan. Im not sure which bovx to check

[MichaelL1 · Accepted solution]

The Thrift Savings Plan (TSP) is a qualified retirement plan. 

If it the regular TSP (not the Roth that was started later), it is taxable income to you.  

The IRA/SEP/SIMPLE box will NOT be checked for the 1099R. 

It is Federal Retirement.

You did something else with it (if you did not roll it over to another retirement account. 

If this does answer your question, please post a comment and I will provide additional help.  (I get a TSP 1099R also)

[MichaelL1]

Tell me what box you are referring to, what TurboTax is saying and I can help you with it.  Thanks

[lisaperez2017]

It has a page with the option of lowering my tax bill.  There a several options asking me to put an amount. Because I retired on disability should I put an amount there or use the other reason option and put the amount I used to relocate

[MichaelL1]

First you mark Qualified Retirement Plan, then you mark Permanent Disability and enter the amount from box 1 of the 1099R.  That will remove the 10% early withdrawal penalty.  sorry I thought you were in anther part of the 1099R.

[lisaperez2017]

But now it's telling me to upgrade to plus because it says I need to fill out  a 1040. Why is that

[MichaelL1]

The reason is you will have a Form 5329, early withdrawal on retirement account that needs to be attached to your return.   This form will show the 10% penalty and then the reason code for why the penalty does not apply to you.  Without the 5329 Form IRS will tax you the additional 10% which in your case does not apply.

"Additional Tax on Early Distributions. Complete this part if you took a taxable distribution before you reached age 59½
from a qualified retirement plan (including an IRA) or modified endowment contract (unless you are reporting this tax directly on Form 1040 or Form 1040NR—see above). You may also have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions"

[lisaperez2017]

On my 1099r in box 2a for taxable income it says UNKNOWN. What amount should I enter ?

[MichaelL1]

enter the total in box 1 for the 10% penalty exception, when the 1099R is entered box 2a will be left blank

[lisaperez2017]

I have two 1099r , the unknown in 2a (taxable amount) is from my annuity payments not the thrift savings.

[MichaelL1]

Sorry, I made wrong assumption.  It is still left blank in the 1099R entry part and then carefully answer the questions after the 1099R is entered.  Thanks

[lisaperez2017]

Sorry if I'm asking so many questions, this is my first time doing this. I still need to fill out the 1040 as well because of the thrift savings

[MichaelL1]

No, that's fine, I'm here to help.  However will be off a couple of days now.  So if you have additional questions, please post as new question, and then you will get a response faster.  You take care

[lisaperez2017]

Ok but u didn't answer the question lol