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I receive a 1099R statement of Survivor Annuity paid Box 2a on my survivor annuity shows UNKNOWN AS TAXABLE AMOUNT what amount should it be

Forum|Forum|7 years ago
June 5, 2019
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Best answer by MargaretL

The taxable amount is calculated for you, based on your form's entries and follow up questions.

First, let's make sure that the form is entered correctly, not as a regular pension.

Please follow the steps below to enter CSA 1099-R.

1. Federal Taxes

2. Wages & Income, Jump to Full list

3. Scroll down and select IRA, 401(k), Pension Plans. On the screen Tell Us Which 1099-R you Have please be sure to select CSA-1099-R Civil Service survivor annuity (if you are survivor, but not the original owner). Select Continue and you will see automatically filled in information on OPM. Select Continue again and you will see Enter Annuity Information screen. You will be prompted to data entry and additional questions about your annuity.

Second, please be sure that the Form 1099-R is entered into Turbo Tax exactly as it appears (all fields, including the contributions); don't change any boxes, if they are blank or have "zeros" in them, please leave the fields in Turbo Tax blank. This will ensure proper calculation of the taxable amount.

MargaretL

Level 12

Is the 1099-R from OPM?

B

Bob78

Level 2

Yes a CSA 1099-R

P

phyzx

Level 4

Yes. TurboTax needs to do something because expecting the user to just know to leave it blank borders on negligent.

I still think TT should let the user enter what OPM put on the form. I vaguely recall somebody previously writing that putting words in some of the fields on the OMB 1099 was "illegal" but:

1. I doubt any laws have been passed prohibiting it (so it's not "illegal"), and

2. even if it is "illegal", OMB put it on the form. TT would just be allowing the user to enter what OMB put on the form. I doubt even politicians would pass laws making that illegal.

@travis716 Correct. Ignorance of the law is not an excuse. Right?

And if OMB can do it why not we?

@TT I say put the text label next to the entry that I mentioned here before. This is if you really do the calcs.

Well its that time of year so lets dig in and have some fun, shall we?

I should add that I called Intuit and had 4 hours time with them. I spoke to 4 people. We got the problem solved for my ignorance and lack of guidance. The TT people I spoke with were great and the best support call I have ever been on. I did computer support for 40 years so I go my best support that I gave to my community. Do unto to others paid off. I still work the spread sheet as back up. This is not an arena to be incorrect.

V

vicki1941Author

Level 2

Yes

R

rhbauman123

Level 2

1099 R survivor annuity box 2a taxable amount unknown

0

08-26-1942

Level 2

what is the simplified method?

P

phyzx

Level 4

I actually used the simplified method worksheet to validate the entries into TurboTax from 2016 to 2019 and the calculations worked out well. So these are the entries I made and filed. I amended 2017 - 2019 taxes as the 2016 1099-r was correct. The annuity started 2017/01/02.

MargaretLAnswer

Level 12

The taxable amount is calculated for you, based on your form's entries and follow up questions.

First, let's make sure that the form is entered correctly, not as a regular pension.

Please follow the steps below to enter CSA 1099-R.

1. Federal Taxes

2. Wages & Income, Jump to Full list

3. Scroll down and select IRA, 401(k), Pension Plans. On the screen Tell Us Which 1099-R you Have please be sure to select CSA-1099-R Civil Service survivor annuity (if you are survivor, but not the original owner). Select Continue and you will see automatically filled in information on OPM. Select Continue again and you will see Enter Annuity Information screen. You will be prompted to data entry and additional questions about your annuity.

Second, please be sure that the Form 1099-R is entered into Turbo Tax exactly as it appears (all fields, including the contributions); don't change any boxes, if they are blank or have "zeros" in them, please leave the fields in Turbo Tax blank. This will ensure proper calculation of the taxable amount.

S

studer-ann

Level 2

How do I get to the correct Form to enter the data?

A

Anonymous

Leave the field showing Unknown blank.

T

turbokingmel

Level 2

If you receive an additional payment purchased by voluntary contributions (amount is listed at the bottom of CSA 1099R), realize that the amount listed in 9b ONLY includes your contributions for your regular annuity, not the voluntary contributions you made for the additional annuity. If you don't , you're paying taxes again on all of your additional annuity.

H

hookstom

Level 2

The posted answer is very complete but does not match my copy of Turbo Tax Home and Business and I am still struggling with my original question.

The form that I received for OPM is form CSF 1099R.

The Box 1 entry is $2460

The Box 2 entry is UNKNOWN

The Box 3 entry is NONE

The Box 7 entry is 4 - DEATH - BENEFIT

The Box 9b entry is 2730.69

My question is " is the Box 1 Gross distribution taxable or is it treated as a non-taxable survivor benefit?"

I will appreciate the assistance.

JohnB5677

Level 15

Box 1 is taxable unless you enter a corrected amount in box 2a. The IRS instructions state "Generally, you must enter the taxable amount in box 2a."

If the annuity was purchased with after-tax funds, then it’s non-qualified. Non-qualified annuities require tax payments on only the earnings.

The amount of taxes on non-qualified annuities is determined by something called the exclusion ratio. The exclusion ratio is used to determine what percentage of annuity income payments is taxable and how much is not. The idea is to determine the amount of a withdrawal or payment from an annuity is from the already-taxed principal and how much is considered taxable earnings.

Exclusion Ratio Example

Your life expectancy is 10 years at retirement.
You have an annuity purchased for $40,000 with after-tax money.
Annual payments of $4,000 – 10 percent of your original investment – is non-taxable.
You live longer than 10 years.
The money you receive beyond that 10-year-life expectation will be taxed as income.

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T

travis716

Level 2

@JohnB5677

Given the exclusion rule (which I am aware of), and given that block 2a on the OMB 1099R reads "UNKNOWN", how does the TurboTax user exclude the exclusion amount from taxable income? Are you saying subtract it from the amount in block 1 and enter the reduced amount in 2a of the form provided by TurboTax even though the paper form reads "UNKNOWN"?

I have calculated and excluded it myself in the past - but only on the form 1040. I haven't used TurboTax in the past...