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Level 2
June 1, 2019
Question

Can I change to three year rule?

  • June 1, 2019
  • 6 replies
  • 35 views

Last year I used simplified rule by mistake. this year program will not let me use three year rule.

6 replies

MichaelL1
Level 15
June 1, 2019

The 3 year rule or sometimes called general rule cannot be used.  Please see this link for more details.

If you were retied a number of years ago under the 3 year rule then 100% of the annuity is taxable income to you now, and you would need to Amend 2017 to increase your taxable income.

https://www.irs.gov/publications/p939#en_US_201812_publink100094759



Warrens25Author
Level 2
June 1, 2019
if I had not imported data from 2017 return the program would never know I mistakenly used Simplified Method last year!!