topic My pension and annuity distributions is $86,980 but TurboTax reduced it to $39,684. All of it should be taxable. Why was it reduced? in Retirement tax questions

My pension and annuity distributions is $86,980 but TurboTax reduced it to $39,684. All of it should be taxable. Why was it reduced?

traceetk — Wed, 18 Feb 2026 02:58:46 GMT

My pensions are from our military retirement and my civil service retirement. Should it be reduced?

Re: My pension and annuity distributions is $86,980 but TurboTax reduced it to $39,684. All of it...

JamesG1 — Wed, 18 Feb 2026 03:41:57 GMT

The pensions distributions on IRS form 1099-R in box 1 reported $86,980. On the Federal 1040 income tax return, are you saying that the box 2a (taxable amount) was reduced to $39,684 by use of the simplified method or general rule? Or are you saying something else?

For instance, are you saying that the Federal 1040 income tax return reports a taxable amount of $86,980 and a state income tax return reduced the taxable amount to $39,684? What state would that be?

Please clarify.

Re: My pension and annuity distributions is $86,980 but TurboTax reduced it to $39,684. All of it...

traceetk — Wed, 18 Feb 2026 04:13:55 GMT

After reviewing my taxes again, there was an input error. I put in the taxable amount box the federal taxes withheld. After I corrected that error, it computed correctly.