I struggled this year.
Because of an inheritance we hired a CPA. He told me I didn't need him all i needed to do was exclude it.
The federal matched exactly but the Turbo Tax State included my pension as taxable and the CPA did not. I had no way to mark the pension as non-taxable. So, I wound up entering it as an IRA account. Afterwards the end result matched what the CPA said.
I didn't know how to notify anyone of the error in Turbo Tax. Hopefully someone there will read this.
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@remmarg You need to go back through the 1099 R interview. Was there a 4 in box 7 entered?
TT handles inherited IRA's and pensions fine if you complete all the interview questions appropriately.
I'm not exactly sure if you rolled the funds or took a distribution. Were you a spouse? Inherited IRA's and Pensions . In general, pension and annuity income received by a survivor or beneficiary, whether in the form of periodic payments or in a lump sum, are taxable if they exceed the decedent's previously taxed contributions.
You are not giving enough information as to why it would be non-taxable income. What type of pension, was there a basis, was there estate taxes paid, who beneficiaries were., was it some type of roth account.....
Form 1099-R will typically report a "4," in box 7. If a "4" appears, it means you took a distribution from a tax-deferred retirement account and you are exempt from the early distribution penalty as the distributions were made after the original account holder's death.
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