Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
willretired
New Member

What do I do with money 1099-R box 9b

I have an amount stated in that box. When Turbo asked a question on line 3 of simplified method, I put $0??
20 Replies
BMcCalpin
Level 13

What do I do with money 1099-R box 9b

Box 9b on the 1099-R shows the amount of the employee "contribution" to the retirement plan.

"Basis" in a retirement plan is also called "cost" or "contribution". In a word, it is the amount of after-tax dollars that the taxpayer contributed to the retirement plan over the years while he/she was employed.

When the taxpayer retires, then the pension or annuity from the retirement plan begins. As the payments are made to you, each payment consists of a little bit of that "basis" and a lot of the money that the company is contributing.

You don't owe tax on the "basis" that is paid to you each period, because the "basis" is after-tax dollars that you contributed - and you don't get taxed twice on the same money.

The employer's contribution is, of course, taxable. This means, for example, that if a taxpayer received $12,000 in pension payments, that perhaps only $11,600 might be taxable if $400 of the payments were the return of the "basis".

There is a Simplified Method that determines the amount of "basis" that is included in each periodic payment, so that the return of the "basis" to the taxpayer is spread out over an actuarial life span.

If the taxpayer didn't make any after-tax contributions to the retirement plan (as is often the case), then the "basis" is zero, and each distribution from the retirement plan is 100% taxable.

Since you have an amount in box 9b, this means that you have basis in the retirement plan, and you want to enter that instead of zero.

I do not know which "Line 3" you are referring to, but when you enter the 1099-R, make sure to enter box 9b. And when you see the entry for "plan cost" in the Simplified Method interview, make sure that you put in the amount in box 9b, if it's not already there.

The result should be that the taxable amount of the pension should be somewhat less that the gross distribution, because part of the gross distribution was the return of a small amount of what was in box 9b.

tim20
New Member

What do I do with money 1099-R box 9b

If the Taxable amount is Box 2a is less than Gross amount in box 1 then they probably already reduced the taxable amount using the simplified method.
jhillman0425
New Member

What do I do with money 1099-R box 9b

If the taxable amount in box 2a reads "Unknown", is this interpreted as, less than the gross amount?  There is also an amount in box 9b

leavittdan
New Member

What do I do with money 1099-R box 9b

Thank you for the explanation. You were very thorough and this helped me answer part of my question I was searching for on the interwebs. 

 

So I have a client that has a 1099-R that says "unknown" in box 2a. There is an amount in box 5 AND an amount in box 9b. My question is this: if I want to calculate the taxable amount do I start with box 1. (Gross Dist.) and subtract box 5 and box 9b?? Thanks for your help. 

ThomasM125
Employee Tax Expert

What do I do with money 1099-R box 9b

You can't simply deduct the amounts in box 5 and 9b from the amount in box 1 to determine the taxable amount of a pension plan distribution reported on form 1099-R. The amounts in box 5 and 9b may refer to contributions in other periods besides the current period.

 

When you enter the form 1099-R in TurboTax, the program will ask you the pertinent questions to determine the taxable amount of your pension plan distribution in the current year.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Kelis5
New Member

What do I do with money 1099-R box 9b

How do I find out how much is taxable amount for box 2a for form 1099r with unknown is in my box

VolvoGirl
Level 15

What do I do with money 1099-R box 9b

Leave box 2a unknown....leave it blank.  Then keep answering the follow up questions to determine the taxable amount.  What code is in box 7?  Why did you get the 1099R.

Hephz5491
Returning Member

What do I do with money 1099-R box 9b

It really is not clear where the simplified method is explain and complete instruction on how to determine if I need to figure out how much taxes should be included in the filing. I am not an account nor CPA. All I've ever done is just fill in the blanks. 

 

I've never had to pay. But it seems I do  this year because of box 9B. So I am "stubbed".

Hephz5491
Returning Member

What do I do with money 1099-R box 9b

The taxable amount in 2a says UNKNOWN .... So where does that assure me whether I owe or not?

Hephz5491
Returning Member

What do I do with money 1099-R box 9b

this answer does not help me to know if any computation is necessary.

Hephz5491
Returning Member

What do I do with money 1099-R box 9b

... code in box 7 is 4- death benefit ... its my survivor annuity ...I am a widow

Hephz5491
Returning Member

What do I do with money 1099-R box 9b

I got the 1099R because its my survivors annuity from my husband retirement ... we both were Civil Service Retirees

MarilynG1
Employee Tax Expert

What do I do with money 1099-R box 9b

@Hephz5491 Enter your 1099-R exactly as issued.

 

If there is an 'Taxable Amount' in Box 2a, that is the taxable portion of the Distribution in Box 1 that is taxable (they may be the same amounts).

 

Pay close attention to the follow-up questions after you enter your 1099-R, if Box 2a says 'Unknown' .  The Taxable Amount will be calculated for you based on your entries to these questions. Leave Box 2a blank in TurboTax if this applies to you. 

 

Click this link for more info on Civil Service Survivor's Annuity.

 

 

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
pwong2003
Returning Member

What do I do with money 1099-R box 9b

Great explanation. Thank you. -- Pat

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v