It looks like my Federal pension is being treated as an IRA. It tells me that I made a 45,866 deduction. This was the taxable amount of my pension. I entered it right. It tells me I owe 4,587 in early withdrawal penalty. My IRA did have a 14,500 taxable gross distribution. But they are not the same. And anyway I am 67 years old so the early withdrawal would not apply.
By the way, the program is also telling me that I did not finish doing my residential property tax input. I triple checked. It is there. It still wants me to go back and complete it. Doesn't matter, TurboTax tells me I am claiming the Standard deduction.
One mistake I said that TurboTax tells me that I made a 45,866 deduction. What I meant was a 45,866 withdrawal. Sorry.
And made sure each 1099R is assigned to you and not your spouse if married. Is your spouse under 59 1/2?
My personal info birth shows correct date 1951, Wifes is also correct 1952 we are both over 65. Info on 1099R's carried over from last year. Correct then, correct now.
This is the first report I’ve seen of this. Try updating your program. Go up to Online- Check for Updates. I’ll ask around and ask the moderator.
Whoa! For the Federal Pension it was coded a 1. Thank You all!!!
Where do you see any penalty? A code 7 never has an early distribution penalty reguardless of age.
You appear to be using the CD/download version - switch to the forms mode.
Is there a 5329 form in the forms list - if so what line is there an amount on?
Then you should get a corrected 1099-R from the insurer since you are over 59 1/2.
Did the 1099-R have an incorrect Box 7 code or did you type it wrong?
My Bad. The basic data got rolled over but the error really had to be mine. Everything corrected fine once I changed that entry to the right one.
entering the wrong Distribution Code for your 1099-R can result in form 5329 with a 10% penalty.
You said:
"By the way, the program is also telling me that I did not finish doing my residential property tax input. I triple checked. It is there. It still wants me to go back and complete it. Doesn't matter, TurboTax tells me I am claiming the Standard deduction."
For 2918 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.