topic Retirement Earnings Year in Retirement tax questions

Retirement Earnings Year

cvachlon — Tue, 02 Mar 2021 20:42:43 GMT

My wife retired in 2020, but due to paperwork delays, did not receive any retirement earnings until Feb of this year when she received retroactive payments covering Jan - Dec 2020. Am I correct that these are considered 2020 earnings and will be reported on our 2020 tax return even though funds were not received until Feb, 2021?. So far, we have not received a 1099-R.

Re: Retirement Earnings Year

macuser_22 — Tue, 02 Mar 2021 20:47:47 GMT

You would have to ask that question to the payer of the retirement to see what year they are reporting it to the IRS. If 2020 then they were required to send the 1099-R no later then Jan 31, 2021.

If they will report it on a 2021 1099-R then it goes on your tax return next year.

If you think that is wrong, then you must work it out with the payer since they report it to the IRS.

Re: Retirement Earnings Year

cvachlon — Wed, 03 Mar 2021 03:53:45 GMT

Thank you for your response. I assumed that since they issued the payment if Feb, they would not have been able to issue a 1099 in Jan. They also had suggested that my wife go collect for prior years and had mentioned a possible need to amend returns for those years. This is what made me believe that this might affect 2020. However, as you suggested, I will ask them and react accordingly. Thank you, again.

Re: Retirement Earnings Year

cvachlon — Fri, 05 Mar 2021 18:56:13 GMT

You were correct. I called both agencies and they told me they are reporting the funds in 2021. They caused the concern since, initially, they wanted to set the retirement date 5 years earlier and had mentioned us amending those returns. Naturally, their current actions show that conversation to have been inaccurate.

Thank you!