topic 1099 form questions in Get your taxes done using TurboTax

1099 form questions

maskone — Mon, 13 Apr 2020 14:41:47 GMT

Hi,

I filled out a 1099-R tax form for an inherited IRA life insurance fund. I took a lump sum payment but do not know how to classify it on Turbo Tax. There is a drop down menu with a list of choices and would like to know which I should choose.

I also opened an Inherited IRA from my father but didn't receive a 1099-R form. How would I go about entering this? I know I don't have to pay taxes on it but I'm sure it must be reported.

Thanks

Re: 1099 form questions

LinaJ2020 — Mon, 13 Apr 2020 17:15:30 GMT

To enter a Form 1099-R, here are the steps:

In TurboTax online,

Sign in to your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "1099r" and Enter
Select Jump to 1099r
Follow prompts

You will only receive a Form 1099-R if you take a distribution from a retirement plan or IRA. If you did not take any money out of your inherited IRA, you would not receive one.

@maskone

Re: 1099 form questions

maskone — Mon, 13 Apr 2020 19:22:59 GMT

I already entered the 1099-R information but when Turbo Tax was finishing up my return

it gave me a drop down menu to specify what type of income this was. I didn't see anything

regarding a lump sum payment from being the beneficiary or this account.

So if you have an inherited IRA you don't have to report it until you withdraw money from it?

Re: 1099 form questions

KarenM90 — Mon, 13 Apr 2020 19:35:56 GMT

Yes, that is correct. You generally won't report anything related to the Inherited IRA until you get a 1099R for a distribution.

The only thing that should be reported is any basis that you have in the Inherited IRA. (This would be the same basis as your father had in the IRA - ie- any non-deductible contributions he had made.) If that is true, those questions will be in TurboTax after you enter any 1099R.

Re: 1099 form questions

maskone — Tue, 14 Apr 2020 11:48:51 GMT

There seems to be some confusion here. I had two separate questions regarding two different accounts.

I have a life insurance annuity where I was named a beneficiary and took a lump sum payment. I received a 1099-R form from the insurance company and entered the information in Turbo Tax. When I was finishing up the federal return Turbo Tax asked me to specify what type of income this was with a drop down menu of options. I didn't see anything regarding a lump sum payment so I was wondering what I should choose?

Re: 1099 form questions

JulieS — Tue, 14 Apr 2020 20:33:04 GMT

The only drop down menu in the 1099-R section is for the box 7 code. You should check box 7 on your copy of the 1099-R form and select the corresponding number. For example, code 7 means Normal distribution.