How TT figures pension tax?

[user17709788658]

We enter info from a 1099-R.  The taxable amount (box 2) is not the same as the gross amount (box 1).  Instead of computing the tax, TT asks how we computed the tax in prior years.  We don't have a clue.  TT has computed the tax for every year for which we have been receiving a pension.  So, TT knows the answer.  In fact we buy TT so that we don't have to know how to figure the tax.  How do we answer the question?  TT wants us to choose between "General rule" and "Simplified method".  We certainly don't know how TT did it last year (or any year).

DG

[DoninGA]

Go back and edit your Form 1099-R.  After completing the entry of the 1099-R there are a series of screens. 

On the screen Annuity information you are asked For the years you received these distributions, was the total amount shown in the form the amount you paid tax on? 

If you answered NO, the following screen asks about the General Rule or the Simplified method. 

Answer YES to question so you will not be required to select either the General Rule or the Simplified method.

[SteamTrain]

@user17709788658 

Yep...return to the initial question, and do as @DoninGA  has indicated.

A couple of us had asked a Moderator to look into having the sentence changed to include box 2a in that YES statement...just as it did last year, but no action has been taken by the software folks yet.

If you did attempt to enter some $$ into either the General or Simplified calc methods, you might have to delete the 1099-R form entirely, and start over.

[user17709788658]

Thank you for your response.

But, my box 1 (gross amount) and box 2 (taxable amount) have different numbers in them (and have for every year that we got SS).  Doesn't that mean I should answer "NO" to the question about paying tax on the total amount?

DG

[SteamTrain]

@user17709788658 

SS?   a 1099-R doesn't have anything to do with Social Security.

IF you are attempting to enter your SSA-1099 from Social Security...you are using the wrong software form.

The SSA-1099 is in a different menu selection, just below the regular 1099-R form menu selection.

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BUT...if you are entering an actual 1099-R (pension, 401k/TSP, but not an IRA) with box 2a somewhat lower due to some after-tax contributions your made....then you do answer YES to that follow-up question....then the box 2a value is used in spite of what the text actually implies.

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Like I said, we really want the software folks to change the question to be what they used in prior years so that they stop misleading people to selecting the wrong answer

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Last year (for 2024 taxes)  the question was:

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This year (for 2025 taxes), they totally messed it up and needs to be changed: