Pension - taxable vs non-taxable

[pipeka]

Last year my pension 1099-R  -- the gross distribution was the same as is 2a taxable amount and my 2018 Tax final did not show it as taxable.   The 1099-R for 2019 is listed the same =    why is my pension now in 2019 being taxed when it was not in 2018?

[DawnC]

Have you gone through all of the follow-up questions that come up after you enter the 1099-R?  The taxability of your retirement income is dependent on many factors, including your answers to those follow-up questions.  Do not worry about what is in Box 2a.  

Compare your 1040 from last year to this year's 1040.  What lines are different?  

If you receive retirement benefits in the form of pension or annuity payments from a qualified employer retirement plan, all or some portion of the amounts you receive may be taxable.  

If you contributed after-tax dollars to your pension or annuity, your pension payments are partially taxable. You won't pay tax on the part of the payment that represents a return of the after-tax amount you paid. This amount is your investment in the contract and includes the amounts your employer contributed that were taxable to you when contributed.  TurboTax will figure all of this out for you when you enter your 1099-R and answer the follow-up questions in the retirement income interview.  

[babettescott]

I am aware that my pension payments from AZ are taxable. WHERE, ON THE RETURN, do I list the AZ pension payment on my 2019 return.Which line on return. I live in Florida.

[DeanM15]

On the 2019 Federal Form 1040, Pension distributions on Form 1099-R are entered on Line 4c and 4d. IRA distributions are entered on Line 4a and 4b. Total distributions are on the first line (lines 4a and 4c) and the taxable amount is on the second line (4b and 4d). 

In Turbotax use these directions:

• While signed in and working in TurboTax
• Click on Federal in the left-hand black menu
• Click on Income and Expenses
• Scroll down and click on Show More next to Retirement Plans and Social Security
• Click on Start or Revisit next to IRA, 401K and Pension Plan (1099R)

@babettescott