Pension Plan income on 1099 misc

Forum|Forum|2 years ago
January 24, 2024
2 replies
17 views

My pension plan (NOT IRA) sends me a 1099 misc form. When I enter it, it is listed as Business Income, not other income. How do I correct this?

AmyC

Level 15

My guess is that you are entering all information correctly and honestly while the program has a different reason for asking the question. If you go back to the question that asks how often you get the money and select that you only got the money in 2023, the program will understand this is not a business with a regular client sending you money. The program should then switch to other income correctly.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

TomD8

Alumni - Champ

Pension distributions are properly reported on a 1099-R, not a 1099-MISC. As @AmyC described there are workarounds in TurboTax that will make your 1099-MISC appear on your tax return as Other Income, but the problem with that is that there are 15 states that don't tax pension income. If you live in one of those states, and your pension income is marked as Other Income on your tax return, it's probably going to get taxed inappropriately at the state level.

The 15 states are listed in this web reference:

https://www.annuity.org/retirement/states-that-dont-tax-retirement-income/

**Answers are correct to the best of my ability but do not constitute tax or legal advice.