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Level 1
posted Mar 10, 2021 6:50:41 PM

difference between W2 and 1099-R

I am 65, retired and just finishing my State taxes. I did not work my summer job last year, which usually amounts to about $7,000.00 and a W-2 form, but not this year. I only have 1099-R for my pension and a SSA-1099, for Social Security.

Should I be concerned?

I usually pay a small amount, $50 - 100. This year, I had a refund of $50.00, which I divvied   to various state charities listed on the form. 

Again, my concern is that filed correctly based on TurboTax's guide?

Thank you

0 4 728
4 Replies
Expert Alumni
Mar 10, 2021 7:24:02 PM

There are a number of variables here. First, are you in a state where Social Security is taxed? That is, as you know, the amount of Social Security that is taxed varies between 0% and 85%, depending on your other income.

 

Since you reduced the "outside" income (the summer job), then perhaps there is no Social Security being taxed this year in your state, reducing your tax bite.

 

As for your summer job, you may have been under withholding somewhat, causing the normal amount you owe. But this year, if you did not include the summer job, then your net tax situation may have improved.

 

So, lacking any other information, this may be a perfectly reasonable result.

Level 15
Mar 10, 2021 7:24:09 PM

If you reported your social security and pension and any dividends, interest and capital gains you shouldn’t be worried 

Level 1
Mar 10, 2021 7:38:28 PM

Thank you, appreciate your time.

Level 15
Mar 10, 2021 7:43:18 PM

Are you in NJ? A  $50 refund sounds like that state's refundable property tax credit.  NJ does not tax Social Security, and has a large retirement income exemption.