How do I report the portion of a 1099R I received from my spouse when Married Filing Separately?

[ThomasM125]

I believe you mean your spouse received a pension plan distribution and gave a portion of it to you. If so, that would be a gift to you and as such you would not report it on your tax return. You spouse would report all of that income on his or her tax return.

[vsokolev]

Thank you for your answer. My spouse was court ordered to give me half and therefore insists it’s not a gift. We had to list it as earned income by me and use a substitute 1099R to  report only half of it for him. I am ending up paying a lot of taxes on it because of this. Any suggestions?

[Vanessa A]

What did you do with the money?  Did you roll it over or did you cash it out?  If you rolled it over, then it is not taxable, however, you need to tell TurboTax that you rolled it over.  You will be be asked as you walk through the questions after entering the 1099-R what you did with the money.  Here you can answer that you rolled it over, then you will be asked additional questions and this will be removed from taxable income.

If you cashed it out, then you would be responsible for the taxes on it. If you are under 59.5, then you would also be responsible for the 10% early withdraw penalty.

Benefits paid to a spouse or former spouse. Benefits paid under a QDRO to the plan participant's spouse or former spouse must generally be included in the spouse's or former spouse's income.