Are Federal Annuitants required to report Tax-free amount prevoiusly recovered ?

[MarilynG1 · Accepted solution]

Yes, you should report the Tax-Free Amount Previously Recovered IF you made after-tax contributions to the plan.  If you did not, the Distribution Amount in Box 1 is the taxable amount.  However, if you did make after-contributions AND you have an amount in Box 2a, then that is the Taxable Amount, because the plan made the calculations for you, so that's all you need to enter in TurboTax.

The Simplified Method is only used if box 2a is blank (or Unknown) and box 2b (not determined) is checked.

Here's more info on Tax Free Amount Previously Recovered.

@kjhagan