army pension or IRA distribution?

[sdarden]

Im retired army, self employed. Last year my pension was taxed. this year it is taxed but categorized as an IRA distribution. Why? Does it matter? Does it change my taxes?

[xmasbaby0]

Where did you enter it?   

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[VolvoGirl]

Pension should be on 1040 line 5a and taxable amount on 5b.  Or Did it show up on the IRA line 4?  Or is it asking if you took the RMD for it?  If you are 72  it will ask you if it is the RMD.  Say yes.  Anything your pension pays you is considered to be the  RMD.  Traditional pensions automatically fulfill the rules of an RMD.

[fanfare]

If it is on Line 4 that means you mistakenly checked the IRA box on 1099-R

@sdarden 

[sdarden]

thats were I entered it.

[sdarden]

same 1099R that's been on TT for 15+years. I just change the numbers. After I changed the amounts, it asks me if I inherited the IRA from Defense finance and accounting service. That's who pays the retirement. I did not. Bee, retired 23 years. nothing new

[VolvoGirl]

What code is in box 7?  It should be a 7.  Code 4 is for inherited.  Maybe you typed 4 instead of 7?  And how old are you?  Is it actually showing up on line 4 instead of 5?  Or why do you think it's entering it as an IRA?  I think you turned 72 and it's asking if you took the RMD.  As I said above.....

Say all of it is the RMD.  If you are 72  it will ask you if it is the RMD.  Say yes.  Anything your pension pays you is considered to be the  RMD.  Traditional pensions automatically fulfill the rules of an RMD.

[sdarden]

Im 66 this year. RMD? The distribution shows up on the 1040 line 4b. the worksheet  for the 1099R box 7 is marked 7 (same as the 1099R, and the IRA/SEP/Simple  is checked. Should/can I uncheck it?

[VolvoGirl]

Is your actual 1099R checked in the IRA box?  That is wrong.  Ask DFS about that.  That's why it's showing up on line 4.  Yes uncheck it.

[sdarden]

It says 7, didn't change it. I'm 65 years old. It shows up on line 4b only, nothing on line 4a. IRA/SEP/Simple box is checked. I didn't check it, but I can uncheck it. 

[sdarden]

That box is not on my 1099-R. Its filled in with the 7, nothing else. It is not called an IRA at all. Thinking TT program error. I think I need to uncheck the IRA/SEP/Simple box on the work sheet but dont want to cause any program issues

[VolvoGirl]

But what is on the actual 1099R you got from dept of defense?  Is the IRA box checked?  YES uncheck it!  If it is on line 4 and not line 5 the IRS will send you a letter saying you didn't report it and owe more tax.   @dmertz  Help

[sdarden]

No IRA box to check on the 1099-R. 

I unchecked the box on the worksheet and everything is looking correct now. Thanks for everyone help!

[sdarden]

I unchecked the box IRA/SEP/Simple and the amount moved to line 5b and all is well! Thanks for everyone’s help!