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brakesmith
Returning Member

pension or annuity? How to change ERROR in turbotax?

I mistakenly entered "simplified method" when turbotx asked for a choice between simplied method or something else. Big mistake on my part as program won't let me send e-file without answering more about the presumed annuity. 

Actually the 3 small monthly payments are PENSIONS and NOT annuities that I might have bought. 

I have been receiving these for 15 years and I am now 82. I should have ignored these asked by turbotax. WHY DIDN"T THEY POSE THE QUESTION "IS THIS INCOME FROM A PENSION OR AN ANNUITY".  

I read too much into their "simplified" explanation and came to believe all pensions may be set up by corporations as annuities.  In retrospect the very large companies that send me pension money would be self-insured. 

HOW DO I CHANGE THE INFO IN TURBOTAX TO PENSION AND DELETE THIS "SIMPLIFIED" 

Thanks for your help!!

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2 Replies

pension or annuity? How to change ERROR in turbotax?

Delete the 1099-R and re-enter.      If you use the box 2a method then it will all be taxable. 

 

Under tax law pensions and annuities from a qualified retirement plan are treated the same.

 

https://www.irs.gov/taxtopics/tc410

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
brakesmith
Returning Member

pension or annuity? How to change ERROR in turbotax?

These 1099-R's were are pensions and I had been receiving them for over 15 years. 2 of 3 did not not have the 2b filled in. I fill them in same as gross and all income was taxable. Prior years done by an expert  who used Schs C-EZ and SE ,sch C-EZ has since been abolished. Somehow Turbotax did not ask if the 1099-R's were pensions  OR  annuities and, instead asked if the income was to be treated as simplified or general rule(meaning annuity). I read the info on these and it said  implied simplified was the way to go.  I was stuck at that point(my ignorance). Turbotax would not let me E-file and insisted I fix the sch C and SE forms()which are unnecessary for pensions) .  

I was not going to redo those 1099-R from scratch so I sent the 1040's in by USPS. 

I used to do my own taxes but turned it over to an expert to ease the burden on my wife should I die(I'm 82). 

But, the expert died(he was 84).  

Frankly, the advice to redo the 1099-R may have worked but I figured Turbotax would remember my answer to the simplified vs general rule and make the effort futile. 

I will use turbotax next year BUT will be more careful answering questions where I'm not positive of the answer. 

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