TT 2024 is asking me how I determined the taxable amount on my 1099-R. It just came that way, and I am unsure what to do. I don't remember this in 2023 TT.

[tm_solomon]

Specifically, whether I used the general or simplified rule to determine the taxable amount of income. This is a pension account, and I have nothing to do with calculating how much was taxable.

[DoninGA]

Which Form 1099-R did you select? 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R?

Is there an amount entered in box 2a?  What is the code in box 7?

[tm_solomon]

It is a 1099-R, and there is a difference between the gross distribution and the taxable amount.   (Box 1 and 2a)

[dmertz · Accepted solution]

If the correct taxable amount is shown in box 2a and box 2b Taxable amount not determined is not marked, you shouldn't be using the Simplified Method to calculate the taxable amount.  If you made no after-tax contributions to the pension, the Simplified Method doesn't really need to be used because the entire amount is taxable; zero plan cost means that the entire distribution is taxable.  [Edit: You seem to be saying that you have a nonzero amount in box 2a that is different than the amount in box 1, suggesting that the amount in box 2a is the taxable amount that should be included on Form 1040 line 5b.]

The General Rule is not used for calculating the taxable amount of a pension.

[tm_solomon]

Thank you dmertz--you are correct that there is a non-zero amount in 2a, that is somewhat less than the gross distribution amount.  I cannot determine from information available to me how the taxable amount was determined.  I thought it had something to do with the insurance premiums that are deducted, but since it is not an exact match for the premiums I paid, I don't have a way to determine for certain.

And yes, I did think the entire amount was taxable.  But TT is forcing me to answer questions I do not have the answers to, and I am working on looking this up in last year's TT.  

TT also referred me to Publication 721, and I will try to wade through that.  But for now, TT has created wall I do not know how to climb over.

Thanks for your help 🙂

[tm_solomon]

OK dmertz--I think I got it . . . finally!!!!  

I read more guidance, both TT and Pub 721.  The bottom line is:  use Box 2a, when answering this question; not the gross distribution amount in box 1. 

As you stated, since the entire amount is taxable, this eliminates the need to calculate anything.

Thanks again.

[Eah121]

I’m having the same issue.  The difference between my full amount and taxable amount is exact the amount of the life insurance contribution.  Can just submit and will my taxes be accepted if I just just pick and answer and move on.  Wasn’t asked this last year and don’t know how to find the answer. Suggestions?  

[RobertB4444]

Just use the amount in box 2a.  The taxable amount is determined for you.

@Eah121