topic Re: 1099-R in Retirement tax questions

1099-R

Peggymom — Tue, 09 Feb 2021 05:33:23 GMT

I received my 1099-R - I am a retired police officer. I started getting early S/S and was told that I could make $17,???.00 before I would have to pay tax on any wages I received. I did work part time and did make almost $5,000.00. I received $20,???.00 from S/S but when I fill out all the info for my return, it is showing that $17,???. is taxable and the remainder is non taxable. This is not suppose to be since my 1099-R is not considered income (according to S/S office) it is only for IRS taxes. Have I missed a place in my filling out my return?

Re: 1099-R

SteamTrain — Tue, 09 Feb 2021 12:53:43 GMT

You have a slight mis-conception about what is involved there.

1) If you start collecting SS early, before the full-retirement age for SS, then SS will reduce the next year's actual monthly payout of SS benefits, if your work salary (or self-employment profit) exceeds ~$18.2k for 2020. So, after you file your 2020 taxes, SS will see that you "earned" ~$5k from part-timework, and they won't change next year's monthly benefits ... because it was only 5k. Your 1099-R doesn't affect that.

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2) How much of your yearly SS income is "taxable" is an entirely different situation.

IF you only had SS during the year, and no work income, no 1099-R, no investment income...then none of the SS is taxed......but as you get more income of any other kind during the year, then some of the SS can become taxable....up to 85% of it. So yes, the 1099-R income does affect that. Apparently you've received enough other income such that your SS is getting taxed.

https://ttlc.intuit.com/community/retirement/help/why-did-the-taxable-amount-of-my-social-security-benefits-change-so-much-from-last-year/00/26963

Re: 1099-R

Peggymom — Tue, 09 Feb 2021 16:20:24 GMT

I was told by SS when I signed up that since my 1099-r was from a public service (police officer) that there would be no IRS tax on my SS, but only a change in my SS payment if I made to much money ie w2. So why is there a special question (yes or no) in turbo tax whether your 2099-r is for a public servant ie police officer.

Re: 1099-R

SteamTrain — Tue, 09 Feb 2021 16:35:41 GMT

The software asks that question, because it doesn't know if the 1099-R is for a Police officer... BUT, IF there are $$ in box 5 that went to health insurance, then up to $3000 of the distribution will not show up as being taxable income on the Federal 1040.

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BUT the statement :

@Peggymom wrote:
I was told by SS when I signed up that since my 1099-r was from a public service (police officer) that there would be no IRS tax on my SS, but only a change in my SS payment if I made to much money ie w2. .....

...you may have misheard...or the person you talked to at SS fumbled things in that part I underlined.

There is no such exemption in a Federal tax return for not including that 1099-R distribution as income for determining IF some of your SS is going to get Federally income-taxed (But I haven't thought about if it is a Disability pension...that might be different...box 7 would contain a code 3) . Some state tax returns will exempt it from the state income tax, but not the Feds.