You are correct to ask why your OPM survivor annuity isn't coming up as taxable. In most cases, but not all, it is.
OPM survivor annuity 1099 R. Take a look at box 9b - employee contributions. This box dictates what amount of the withdrawal is taxable to you.
Please be sure to enter OPM 1099-R as CSF1099-R (as a survivor) and not as a regular 1099-R. The program will guide you through questions on OPM distribution:
1. Federal Taxes
2. Wages & Income
3. Scroll down and select IRA, 401(k), Pension Plans. On the screen Tell Us Which 1099-R you Have please be sure to select CSF-1099-R Civil Service survivor annuity. Select Continue and you will see automatically filled in information on OPM. Select Continue again and you will see Enter Annuity Information screen. You will be prompted to data entry and additional questions about your annuity. Please be sure to enter all information – including your contributions- exactly as it appears on the form. This will ensure proper calculation of the taxable amount.
Go here for a Q&A about the CSF1099R form.
