I have three 1099-Rs from OPM for 2024. My husband and I were both retirees from Fed Govt and both receiving an annuity. My box 2a has always had a Taxable Amount but my husbands has always been UNKNOWN. Husband passed away in 2024 and now I have a 1099-R Survivor Annuity in addition to my 1099-R and my late husband's 1099-R. This is his last tax return. We used to use H&R Block until 4 years ago when I started using TT. H&R Block said they didn't have the worksheets so I have no idea how much of my husband's cost basis of his annuity ($50K) has been recovered. I started using the Simplified Method for both of our tax returns starting in 2020. Here are my concerns/questions:
- Since I really have no idea how much of cost basis has been recovered, should I be using Simplified Method for my husband's annuity?
- I've been using Simplified Method for my annuity even though I have a taxable amount in 2a. I now realize I should not have been doing this.
- Now that I'm trying to enter the 1099-R into TT for 2024 for Survivor Annuity Paid, its forcing me to use Simplified Method for the Distribution Code 4-Death Benefit and I don't feel it should be Simplified Method. Fed Taxes have been withheld but 2a is UNKNOWN. My husband's annuity has been paying for 30 years. I called H&R block today and was told that my Survivor Annuity is fully taxable.
- Also, the TT system is pulling incorrect info from 2023 for Simplified Method calculation. It's pulling MY annuity start date, and my cost basis and my balance instead of his. I have double checked and I am working in his 1099-R. I went back and checked the 2023 Worksheets and there is a HUGE error on Turbo Tax's part. Even though I entered in the correct 1099-R info for both of us, the Worksheet for 2023 shows that our Annuity starting date, Plan cost at annuity starting date, age, age factor have been SWITCHED (mine is his, his is mine) so it threw off all the calculations for 2023. I even went back and pulled 2022 worksheets and those were accurate. Not sure what happened in 2023 but appears to be a glitch.
What should I do? I can't get through my 2024 taxes because of the system requiring me to use Simplified Method and it's showing inaccurate info from our 2023 return.
