@green594 wrote:
MargaretL- i was hoping you could provide a follow up to this answer. I am concerned with the Turbo Tax the Turbo Tax interface questioning regarding my OPM disability retirement form.
As a disabled retiree under the stated minimum retirement age (MRA) of 57 and 10 months, I believe that I fall under part III of IRS publication 721. Which states: "you mush report all your disability annuity payments received before minimum retirement age on Form 1040 ... Line 1(page 19)." The Publication also stated on page 18 that the payments are treated as "wages" until i meet the MRA.
The issue that i am having by leaving box 2a blank, answering the questions and using the simplified method; i am paying "no tax" on me annuity, this does not seem logical. Moreover if the distributions are treated as wages i should not have to complete the simplified method until i meet my MRA. am i using Turbo Tax incorrectly?
Any input would be wonderful.
If you did the simplified method correctly then you will be paying a tax. Why do you think you are not?
If you are looking at the 1040 line 5b for the tax, it is not there if there is box 7 code 3 and you are under retirement age, the taxable amount will be on line 1.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
