ADDITIONAL TAX RETURNS IN TURBOTAX

Forum|Forum|1 year ago
March 31, 2025
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I filled out the information for a clerical taxpayer his pension was an after-tax contribution; Form 1099R said in

2b "taxable amount not determined", what that means ? and why is calculating additional income tax ???

MaryK4

Level 15

Taxable amount not determined means that the trustee is unable to reasonably obtain the data needed to compute the taxable amount.

If you continue in the TurboTax interview, it will ask you for the taxable amount.

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FEVINAS0416Author

Level 2

Hi, I mentioned "clerical" when a meant "clergy" member; he withdraws after-tax $35,537.40 from his pension from a religious institution.

in Form 1099R, item 7 "Distribution codes" says 7 "normal distribution", but you have codes from A to W; which one applies to this type of distribution ?

DianeW777

Level 15

It depends. Please clarify your question. Is this supposed to be for housing or simply a retirement distribution. If it is supposed to be a retirement distribution, Code 7 (Normal distribution, no penalty applies) is all that is needed and it will be taxable.

If the distribution is for a housing allowance you can follow the information here.

You may include this statement with an electronically filed return using the instructions below.

The IRS allows a housing allowance to retired ministers to the extent the recipient can justify the amount. Should you receive more than you can justify, the excess should be considered taxable.

To access the entry fields for the 1099-R:

TurboTax Online/Mobile or TurboTax Desktop use the link below:
1. Where do I enter my 1099-R?
The program will proceed with the interview questions for you to enter or review the appropriate information. Enter the data from the 1099-R

If Box 2b is not checked, please enter the 1099-R exactly as it appears on the form. This will cause the full amount to show as taxable.

The adjustment will be made in Other Income, following the instructions below:

Open your Federal return and choose Wages & Income
Scroll down to Less Common Income and Show more
Choose Miscellaneous Income, 1099-A, 1099-C
Choose Other reportable income, and Start/Revisit
Select Yes and you will be prompted to enter Description and amount. Enter the description "Retired Minister Housing Allowance," and enter the amount as a negative number (-5000).

At this point, the form 1040 will show your full pension as taxable, but the negative adjustment on Schedule 1, line 8, which carried to Form 1040, line 8, will remove it from taxation. Remember you can only enter an amount equal to your housing expense if it is less than your actual amount received.

Note: You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member. Be sure to include the amount received. You should keep documentation in your records to justify the amount of the housing allowance. This subject is covered in IRC Section 107, which you can mention in your statement.
Remember you can only enter an amount equal to your housing expense if it is less than your actual amount received.
- IRS Publication 517

@FEVINAS0416

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