Pension Not Showing as Income on Federal Taxes

[EscheK]

My father has been getting a pension for over 20 years from the State of CT (he lives in Florida). On his 1099-R Box 2a is blank. I reviewed his taxes for 2021 and 2022 and his pension has always been included as income. I entered the 1099-R has printed (zero in Box 2a) but I can't get TurboTax to see it as Income based on the questions that I answer. I read through all the online help and don't see what I'm doing wrong. I can enter the amount in Box 2a for the 1099-R but they say don't do that - the questions will sort it out.   I have the same problem with his SSA forms. Thanks!

[VolvoGirl]

Don't know about your 1099R problem.  I'll page @dmertz 

But for SS.  If the other income is low (because the 1099R isn't showing up as taxable) then none of the SS will be taxable.   Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

[dmertz · Accepted solution]

Is box 2b Taxable amount not determined marked on the form provided by the pension plan?

If past Forms 1099-R from the pension plan had the same amount in box 2a as is in box 1, it seems erroneous that the pension plan would leave box 2a blank on the 2023 Form 1099-R.  If box 2a is erroneously blank, answering TurboTax's questions exactly as asked will lead to an erroneous result ($0 taxable).

If past Forms 1099-R had box 2a blank and box 2b Taxable amount not determined marked, it seems that your father probably answered that an different amount than the amount shown in box 2a was taxable, then used the Simplified Method where he entered the annuity start date (it seems that any date will work), a plan cost of $0 and 12 month of 2023 payments, resulting in the entire distribution being taxable.

If TurboTax was used for the 2023 tax return, examine TurboTax's 1099-R form for this distribution and see if anything is present in box 2a or if there is anything present on the Simplified Method Worksheet at the bottom of this form.