Calculating CSRS tax-free portion of annuity

[Spinifax]

How do I calculate the tax-free portion of my CSRS  federal retirement annuity when it was done by someone else with whom I no longer have contact?

[SundayInSalem]

TurboTax will ask you questions to calculate the taxable portion of Civil Service Retirement. The method—simplified or general rule—should match what you had previously been using.

If your Form CSF 1099-R includes a taxable amount in Box 2a, you can use that amount.

Otherwise, or if you want to compute the taxable amount yourself:

If your annuity starting date is after November 18, 1996, you must use the Simplified Method for annuity payments from a qualified plan, which is what you have.

If your annuity starting date is before November 19, 1996, you can use the Simplified Method only if ALL the following are true:

1) Your annuity starting date is after July 1, 1986.
2) The annuity payments are for either your life, or your life and that of your beneficiary.
3) The annuity payments are from a qualified employer plan, a qualified employee annuity, or a sheltered annuity.

Where do I enter my CSA 1099-R?

[Spinifax]

I am not a FERS retiree.  I am a CSRS retiree.   My 1099-R  does not show a taxable amount.  It shows "Undetermined".

[BillM223 · Accepted solution]

First, did you ever make any after-tax contributions to your retirement plan? If not, then the issue is moot: 100% of the distribution is taxable.

From your question, I am assuming that you do have some "cost" or basis" (after-tax contributions) in your plan.

First, contact your plan administrator and see if by some miracle, they kept track of your after-tax contributions, your annuity start date, and how much of the after-tax contributions you have already received back.

Once you get this information, put it in a safe place, because you are responsible for it.

Look at your previous returns. Are there any worksheets with them? Perhaps this information is printed on one of the worksheets.

OK, if that doesn't work, do you know your taxable amount from last year? If your distribution was the same amount this year as last year, then the taxable amount very likely is the same.

However, the last way to do this - if you have a spouse who wouldn't mind running and re-running the numbers - is to enter what you know in the Simplified Method and see how close you come to last year's taxable amount. And then do it again, hoping to get closer.

Make sense?