Worksheet A in IRS publication 575 vs the Simplified Method Worksheet in Turbo Tax

[bob1024]

Hello,

I am a retired Civil Service employee and receive a Form 1099R each year from OPM.

The "Simplified Method Worksheet" in the turbo tax software on line 7 shows an age factor of 260 for computing the nontaxable/taxable portion of my annuity. This age factor is from Table 1 of the simplified method worksheet in IRS publication 575 (page 49) for a single individual who retired at the age of 61. 

In my situation, the age factor of 260 is incorrect. It should be 310 based on the combined life of myself and my spouse. The 310 is found in table 2 of the simplified method worksheet found in IRS publication 575 (page 49).

How do I change the "simplified method worksheet" in turbotax to reflect the correct age factor?  It seems to me that the turbotax software should have asked if the pension was covering one person or two people (via a survivor annuity).    

[BillM223]

TurboTax does ask if the annuity covers more than one person.

In the 1099-R interview, after you indicate that you want to use the Simplified Method, the following screen appears (along with others):

It's possible that one of your answers on the previous screens caused TurboTax to end the interview for the Simplified Method. For example, when you were asked "For the years that [name] received these distributions, was the amount shown in the taxable annuity box the taxable amount?", what was your answer?

In fact, I am a little surprised that you have to go through the Simplified Method at all - doesn't the OPM have a record of the amount of after-tax contributions made to your pension while you were working? I would have expected them to do the calculation themselves and entered it in box 2a.