topic Re: 1099-R format not recognized in Retirement tax questions

1099-R format not recognized

mattkeene — Wed, 29 Jan 2025 12:46:57 GMT

I receive a 1099-R form "U.S. Department of State- Foreign Affairs Retirement and Disability System Annual 1099-R." The problem is that none of the 1099-R form templates in Turbotax match it from box 9 onward. I have additional boxes for Health Benefits and Dental and Vision that aren't able to be inputted. Even more problematic, when I manually input it, Turbotax sees it as a withdraw from an IRA that needs to be taxed as such instead of a monthly pension that I pay income tax on. I've had issues in past years making my 1099-R fit, but this year I can't seem to enter it in a way that the tax is properly calculated. I tried uploading a picture as well, and that didn't solve the problem.

Re: 1099-R format not recognized

KrisD15 — Wed, 29 Jan 2025 13:34:06 GMT

If the Health Benefits are premiums you pay, you can enter those amounts as Medical Expenses under Deductions and Credits.

Make sure the Income, (taxable in Box 2 and Total in Box 1) and all taxes withheld are entered on the 1099-R screen.

You will need to go through the interview after the entry and indicate that it was taken as an annuity in order for the program to recognize it as a pension.

Re: 1099-R format not recognized

mattkeene — Wed, 29 Jan 2025 14:31:40 GMT

The interview doesn’t as that. It asks me whether it was a qualified or unqualified withdrawal or I rolled it over into something else.

Re: 1099-R format not recognized

KrisD15 — Wed, 29 Jan 2025 14:37:18 GMT

Is this a Civil Service annuity and if yes, did you indicate that on the "Tell Us Which 1099-R You Have" screen?

Re: 1099-R format not recognized

mattkeene — Wed, 29 Jan 2025 14:41:05 GMT

Yes, but the numbered boxes don’t all correspond.

Re: 1099-R format not recognized

KrisD15 — Wed, 29 Jan 2025 22:40:35 GMT

To clarify,

Do you have a number in Box 2 a and if yes, what is that number?

Is this number less than the total distribution?

Do you answer, "yes" it is qualifying?

What is the code for the distribution? (Is there a Box 7)?

Re: 1099-R format not recognized

Ret FSO — Fri, 31 Jan 2025 15:24:30 GMT

Try entering it as a Financial Institution or other Provider 1099-R. When you get to Distribution Info page, make sure Box 7 info is correct with Distribution Code 7 (at least that is what my Foreign Service 1099-R says.) It defaulted to Code 1. Distribution Code 7 is Normal distribution. I checked Qualified Plan on that page. Hope you find this helpful. I am not a tax professional.

Re: 1099-R format not recognized

Ret FSO — Fri, 31 Jan 2025 15:25:38 GMT

It is a Foreign Service annuity, an entirely distinct and different retirement system not part of the USG Civil Service.

Re: 1099-R format not recognized

Ret FSO — Fri, 31 Jan 2025 15:28:49 GMT

What is the code for the distribution? (Is there a Box 7)?

Yes. Distribution Code is 7.

Re: 1099-R format not recognized (Foreign Service Retirement System)

Ret FSO — Fri, 31 Jan 2025 16:35:19 GMT

This is what the Foreign Service 1099-R looks like for a recipient in Virginia. It would be nice if Turbotax would include FARDS as a category and have the boxes match the Turbotax questions.

Re: 1099-R format not recognized (Foreign Service Retirement System)

easdhua csdlkhcf — Sun, 16 Mar 2025 14:39:41 GMT

I'm having the same problem you're having. Did you ever find a complete response?

Also, it seems that this is not just a TurboTax problem, it's also a Charleston problem. The instructions on the 1099-R don't match the boxes in the 1099-R. For examples, the instructions note that "Boxes 3, 5, 6, 8, 9, 12, 13, 14 and 15 have been deleted from the form." Well, no they haven't, and those last four boxes contain important data.

Re: 1099-R format not recognized (Foreign Service Retirement System)

mattkeene — Sun, 16 Mar 2025 14:44:45 GMT

No, never got a complete response.

Re: 1099-R format not recognized (Foreign Service Retirement System)

dmertz — Sun, 16 Mar 2025 16:08:39 GMT

Blame the Department of State. It appears that they never updated its Form 1099-R to incorporate the changes to Form 1099-R that the IRS introduced in 2020. Assuming that the form appears as shown by Ret FSO, enter into boxes 14, 15 and 16 of TurboTax's ordinary 1099-R form what is shown in boxes 12, 13 and 14 of the Dept of State form, respectively (enter by box name, not by box number). Boxes 15, 16 and 17 of the Dept of State form are informational and should not be entered on TurboTax's 1099-R form anywhere. The information from boxes 15, 16 and 17 might be useful in reporting medical expenses if you itemize deductions.