1099R

I received a 1099R for an inherited annuity that was exchanged directly for another annuity (section1035) which is clearly noted on the form. It is appearing in my income. Do I have to include this money in my income if i didn't directly receive anything?

posted

No, you shouldn't have been taxed on a 1035 exchange. Check your hard-copy on your 1099R to see if there is a code 6 in Box 7 and check if you recorded it properly in the program. if it is reported correctly, the amount will appear in 5a of your 1040 but 0 in Box 5B. This means the 1099R amount was reported but not taxed. You can verify this by going to.

Tax tools
Tools
View Tax Summary
Preview My 1040 (This is listed in the menu that appears in the left side on your screen)

Also, if you are looking at your income summary page in your program, the distribution amount may appear there but that doesn't necessarily mean you are being taxed on that amount.

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