I have a CSF-1099R form. Box 2a (Taxable amount) is "Unknown." Would the taxable amount be Box 1 or would it exclude Box 5, which is amount deducted for health insurance.

[rehobothrita]

This is for a civil service pension. I don't know how to answer the question "Describe the taxable amount." How do I know if 1099R says "unknown"? Box 5 is amount deducted for health insurance. Is that taxable?

[macuser_22]

That is probably a CSF 1099-R from OPM.

Was the decedent a PSO (Public Safety Officer) ?     Up to $3,000 of insurance can be excluded for PSO's if box 5 is insurance.  (Box 5 can be several things including employee contributions and/or health insurance paid by the pension.)   If not a PSO then it is not excludeable but can be an itemized medical deduction on schedule A if you can itemize.

OPM violates the 1099-R rules by writing "helpful" information in the box rather than just the value or code like they are supposed to. OPM has done that for years and it causes more confusion than help. They put UNKNOWN in box 2a when it should be blank, and put "7 NONDISABILITY" in box 7 when is should only be "7", "1" or "2".

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount or the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[rehobothrita]

Thank you, macuser_22!  The decedent was not a public safety officer and this is not the first year of receiving payments. There IS a figure in Box 9b. "Total Employee Contributions" which is about $9000 less than Box 1.  So, does this mean that the entire amount in Box 1 is taxable?

[macuser_22]

If this is not the first year then how was it done last year?   Look at last the 2018 tax return and the 1099-R worksheet.  Was the simplified method used to reduce the taxable amount?   You do not suddenly start using the simplified method if not the first year that has a box 9b amount and blank box 2a, you use the 2018 figures for 2019.

[rehobothrita]

Last year's taxes were done by someone else, and I only have the 1040 form (no worksheet). It looks like the preparer entered the full amount in Box 1: Gross distribution on line 4b "Taxable amount" on the 1040 form. So, I will just say that the entire Box 1 amount for 2019 is taxable too.

You've been very helpful! Thank you again, macuser_22!