Where might I enter a deduction for (previously taxed) unrecovered contributions my mom made to her teacher’s retirement for her final return? They are non refundable.

[keithski76-]

My mom passed away before the previously taxed contributions to her retirement were completely recovered. I was notified that these contributions were not refundable but could be claimed as a deduction and was referred to publication 575. However, I did not know if TurboTax provided for such a deduction or if a paper filing and document submission would be necessary.

[AmyC]

If you have a 1099-R, there is box 5 for the employee's basis. See About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans.

That basis can be subtracted to reduce the taxable amount. The issuer may have done that for you already. You can e-file the return with no problem.

Each situation is unique. I recommend you run through the IRS How Do I File a Deceased Person program. It is very detailed and will tell you exactly what is best for your situation.

I am very sorry for your loss.

[keithski76-]

Thank you so very much for your help and condolences. 

I am not sure of the basis but may have paperwork somewhere. I did receive a letter from the teacher’s retirement system about the non taxable contributions that were unrecovered and a precise amount that would have to be entered as a deduction on her last return. The 1099-R was only giving a statement as to the taxable income up until her passing.

This is the 2nd return I’ve had to file as she passed before her 2019 taxes were filed. 

Thank you truly for your help and consideration!

[AmyC]

If there is a GA return involved, there is a special issue for certain years teacher's pay was not taxed correctly and there is an additional adjustment on the GA return for retired teachers.

What state are you in?

If she passed in 2020, this is the right step.

You would not be filing a 2020 return for someone who died in 2019 though. Any income would go to the estate, not the deceased individual. This would go on a form 1041, estate return.