The form 1099R is entered in the program leaving the box 2a blank just like the paper form. Then the follow up interview questions are answered to determine how much of the distribution is taxable.
The box for taxable amount not determined should also be checked unless this is a CSA 1099. Unless you indicate otherwise when answering the follow up questions, the full amount would be taxable.
The full amount in box 1 is taxable, unless YOU know some reason it isn't; which you will tell TurboTax in the interview following entering the 1099-R. The only time a 1099-R is not taxable is when you made after-tax contributions to the account paying the distribution. The most common example is non-deductible contributions to an IRA.
I wonder if I can get a little assistance with this matter. I have a 1099-R (Distribution Code 3), my retirement income is non-taxable as I was an combat injured veteran. But for some stupid reason I decided a couple years ago to have $225 taken out of each check to cover my Georgia taxes and forgot I had done that. Now when I try to file a 1099-R online, I get an error message stating I must have gross proceeds must be greater than the state tax withheld. At this point, I've given away $6075+ and have no idea how to get it back aside from filing my taxes by paper. Any assistance would be greatly appreciated.
@msnelson008 If the amount in Box 1 of your 1099-R is larger than the State Tax Withheld amount, this should not cause an error, even if the amount in Box 1 is Non-Taxable.
Try entering the amount in Box 1 in the 'State Distribution Amount' field of your 1099-R entry to see if this resolves your issue.
Click this link for more info from others on the Gross Proceeds Must be Greater than State Tax error.
Thank you for the quick response. My 1099-R, Box 1 states "$0.00," and Box 14 states "$2,700." That was the additional tax money ($225/month) I like an idiot in my poor mental & emotional state voluntary gave the state of Georgia because I did not know my military retirement was tax-free. The problem is, the tax software says, you can't have taxes on zero income.
Cheers,
Marvin
No, you are correct, you can't report your 1099-R in your Federal Return to claim State Tax Paid with $0 in Box 1.
Unless you are filing Itemized Deductions, you wouldn't get a deduction for them anyway.
However, you should be able to claim State Tax Paid on your Georgia State Return.
You may need to add them under 'Other Deductions' or some similar heading as you go through your State Return Interview.
I hope you have notified your Payor to stop withholding these taxes going forward.
Click this link for more info that may help you with Georgia Military Benefits.
Thank you again for the quick response and your answer was most helpful this time! I will definitely look into that option I did not consider. Thank you for your time and have a wonderful 2021!!!
VR,
Marvin
Hi, me again!
Just to follow up, I itemize my deductions to a tune of about $22K-$25K per year and claim head of household with two dependents. Each year I receive a tax refund anywhere from $7K-$10K federal and $600-$1.2K state. I took your advice and was able to add the $2700 to my federal & state, but my refund only increased $800 instead of the $2700 on state, which I already over paid and nothing happened on my federal. In my head, since I over paid on both and am receiving refunds this year, my federal should go up slightly and my state should go up $2700 since no additional income was added. I was wondering if you had any advice for that. Thanks.
@msnelson008 Yes, it does sound like your Georgia Refund would have gone up significantly.
If you are using the Desktop product, you can view the calculations on the worksheets in Forms mode.
In TTO, if you View/Print/Save your return, you can view the worksheets.
Since we can't actually see your tax return in this forum, you might consider requesting a Line by Line Review if you can't resolve this.
I have the same problem. I received a 1099R with no amount entered in box 2a. This is my pension plan distribution. I'm supposed to be able to exclude my housing costs from the taxable amount but can find no place to input the information. The interview questions don't relate and I can't change the form on form mode.
Thanks if you can help.
@Elsworth To clarify, what type of pension distribution is this that enables you to exclude your housing costs?
I receive a pension from my employer. I haven't put any money into it. I'm clergy and this is a retirement pension. I receive an amount based on the number of years I have been ordained.
See if this helps
Also, my employer gave us a letter stating that up to $30K can be deducted as housing allowance if we have receipts.
Thanks, but the problem isn't that I don't know what I can deduct. The problem is that the 1099-R has no entry in box 2a and TurboTax then shows no taxable amount for my pension.
My solution, at this time, is to enter the appropriate amount into box 2a anyway and right-click on the box to add supporting documentation (my computations)
Did you see the "sub link" https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-parsonage-or-housing-allowance-on-a-1099-r/00/26884
It appears to say what you did is essentially the correct way.
I received a 1099-R with one cent (.01) in box 1, and zero on all the other boxes. Do I have to file this 1099R with my taxes?
No, there is no need to file this Form 1099-R. With rounding, there is nothing to report.