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If you received a taxable QDRO distribution from your former spouse, report this on your return as a "Nominee". The
reported payee should issue a Form 1099-R to the nominee payee (you) for nominee’s
share of the distribution.
If they choose not to send you a Form 1099-R, you have two options to report the income:
First Option:
Enter the amount you received in Line 21 with the caption, “QDRO Distribution from SSN xxx-xx-xxxx (former spouse's SSN).” Enter the QDRO income with the following menu path:
TurboTax will transfer this to your Form 1040, Line 21, Page 1.
You can e-file with this approach because the disclosure is on the face of the return at Line 21. You can also e-file using the step below instead.
Second Option:
If the named annuitant does not want to issue a Form 1099-R to the nominee, then the nominee (you) can enter it as a substitute Form 1099-R (requires Form 4852), by choosing that selection when they start the entry, i.e. "I need to prepare a substitute 1099R."
When signed into your TurboTax account (online or desktop):
1. Use the Search box in the upper right
2. Search for 1099r
3. Jump to 1099r
4. Continue to enter your Form 1099R from the statement and check the box for the statement above. (see image attached).
5. The nominee will enter the named annuitant's information as the "Payer", including SSN as "Payer's ID",
Do I enter the entire amount!?
What about the money I had withheld for taxes
To report a QDRO payment, and you did not receive a 1099, here's how to enter in TurboTax:
TurboTax will transfer this to your Form 1040, Line 21, Page 1.
Any Taxes you had withheld from your payment, can be reported in Deductions & Credits > Other Income Taxes > Other Income Taxes Paid in 2023 > Withholding Not Already Entered on a W-2 or 1099.
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