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froglover43
New Member

Line 5 description what is it

 
9 Replies
Cynthiad66
Expert Alumni

Line 5 description what is it

Not enough details for line 5.  Be specific of what information you need.  Hopefully this answers your question.

 

Here is what we have for the Form 1040, Schedule A:

 

What is Line 5 on Schedule A?

Line 5. The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and 5c. Safe harbor for certain charitable contributions made in exchange for a state or local tax credit.

 

 

Form 1040

Lines 5a and 5b Pensions and Annuities Special rules may apply if you received a coronavirus-related distribution from a profit-sharing plan or retirement plan on or after January 1, 2020, and before December 31, 2020. See Pub. 575 for details.

 

Special rules may apply if you received a distribution from a profit-sharing plan or retirement plan and your main home was in one of the federally declared disaster areas eligible for these special rules at any time during the incident period. Special rules may also apply if you received a distribution on certain dates to buy or construct a main home in one of the federally declared disaster areas CAUTION ! CAUTION ! TIP TIP eligible for these special rules, but that home wasn't bought or constructed because of the disaster. See Pub. 575 for details.

 

You should receive a Form 1099-R showing the total amount of your pension and annuity payments before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. Pension and annuity payments include distributions from 401(k), 403(b), and governmental 457(b) plans. Rollovers and lump-sum distributions are explained later. Don’t include the following payments on lines 5a and 5b. Instead, report them on line 1.

 

• Disability pensions received before you reach the minimum retirement age set by your employer.

 

• Corrective distributions (including any earnings) of excess elective deferrals or other excess contributions to retirement plans.

 

The plan must advise you of the year(s) the distributions are includible in income. Attach Form(s) 1099-R to Form 1040 or 1040-SR if any federal income tax was withheld. Fully Taxable Pensions and Annuities Your payments are fully taxable if (a) you didn't contribute to the cost (see Cost, later) of your pension or annuity, or (b) you got your entire cost back tax free before 2020. But see Insurance Premiums for Retired Public Safety Officers, later. If your pension or annuity is fully taxable, enter the total pension or annuity payments (from Form(s) 1099-R, box 1) on line 5b; don’t make an entry on line 5a. Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-R. For details on military disability pensions, see Pub. 525. If you received a Form RRB-1099-R, see Pub. 575 to find out how to report your benefits.

 

Partially Taxable Pensions and Annuities Enter the total pension or annuity payments (from Form 1099-R, box 1) on TIP line 5a. If your Form 1099-R doesn't show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 5b. But if your annuity starting date (defined later) was after July 1, 1986, see Simplified Method, later, to find out if you must use that method to figure the taxable part. You can ask the IRS to figure the taxable part for you for a $1,000 fee. For details, see Pub. 939. If your Form 1099-R shows a taxable amount, you can report that amount on line 5b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method or if the exclusion for retired public safety officers, discussed next, applies.

dvemerson
Returning Member

Line 5 description what is it

where do i check the general method for figuring taxs on my pensions and annuity?

 

dvemerson
Returning Member

Line 5 description what is it

where do i find the general rule method for taxes on my pensions and annuity?

 

ReneeM7122
Level 9

Line 5 description what is it

 

The General Rule Method applies to form 1099-R.  

 

Under the General Rule, you figure the taxable and tax-free parts of your annuity payments using life expectancy tables that the IRS issues. See IRS topic 411 

 

Take a look at your 1099-R, box 2a.  if it says, undetermined or something similar, leave the box blank in TurboTax.  Then make sure that the "taxable amount is undetermined" box is checked.  TurboTax will to generate the worksheet necessary to determine the amount of your annuity that will be taxable this year by applying the correct method.  Usually, the simplified method is used to determine the taxable portion of the annuity, but sometimes you can recover after-tax contribution amounts using the general method.   

 

Line 5 is the amount that represents your contribution amounts in the annuity. 

 

You can't jump directly to general rule method within the software but the 1099-R is the area to look at to work on this issue.

 

@dvemerson

rashidjamal
Level 1

Line 5 description what is it

I had taken Coronavirus-related 401K distribution in 2020 for an amount 92841 . I had used the 3 years contribution method in the 2020 Tax return and Repaid  30948 of the amount back to my 401k account and I did not have to pay any taxes on it but at the same time I see that total withdrawal amount 92841 reported on 1040 Lines 5a  Pensions and Annuities .
This total amount is also considered as an untaxed income in FAFSA line 92E  when transmitted the 2020 return from the IRS . My Daughter EFC jumps 6 times the actual . 
Please help me how I can correct this? Also I had fully contributed (Rollover ) the amount back to 401k accounts in 2021 and in 2022 which I will report in 2021 tax return. 
AmyC
Expert Alumni

Line 5 description what is it

There is nothing to correct.

You took a distribution in 2020, the full amount shows on line 5a and 1/3 on line 5b, that is correct. For 2021, only the taxable portion will show on line 5b. If you repaid a portion, then only the taxable portion will show.

As for the rollover in 2021, it will go on your return as a rollover. It will show as money distributed but not taxed. We are in 2022 and 2021 tax returns are due April 18 unless you file an extension for the paperwork. Money is still due April 18.

 

@rashidjamal

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rashidjamal
Level 1

Line 5 description what is it

Thank you for your response. 

Line 5b is showing the total distribution amount .

Line 5a is Tax amount which is showing  0 now because I have repaid 1/3 of the amount which was reported in 8915-E . 

Line 5b Total amount reported to FAFSA as an untaxed Income other than my AGI which is my concern. 

FAFSA should not consider this Coronavirus Related distribution or subtract the 1/3 Rollover amount.

Also since I repaid back total distribution to my 401k account and have not filed 2021 taxes still. Can I Amend my 2020 taxes Form 8915 only by Total Rollover (Repayment) Amount ? I see Cares Act gives full flexibility to repay within 3 years  (Publication 575 and Notice 2020-50 ) and Amend Tax Return. This way I can Confirm FAFSA and University to Correct the FAFSA as Full Rollover has been done. 

AmyC
Expert Alumni

Line 5 description what is it

Ah! Yes, you can do an amended return. Please:

  • Save a copy of the original return before doing an amended return.
  • See how to file an amended return.
  • Follow your amend at track an amended return 
  • Here is a great FAQ to show the math for amended returns. 
  • tracking is recommended to ensure safe arrival

 

In addition, you may need to file a state return. 

@rashidjamal

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rashidjamal
Level 1

Line 5 description what is it

Thank you Amy! Appreciate it. 

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