Skip mostly to question 4, before that is background. How do I correctly enter this 1099-R pension form?

[leeleses]

Hello All,

In theory, my return isn't too difficult!

But I need help because I went to another job in a new state (Maryland) in May.

Until May I worked in PHILADELPHIA as a 911 dispatcher.
After May I now work as a police officer in Maryland!

I have to enter the following:
1) W2 from City of Philadelphia
2) W2 from City of Baltimore
3) 1099-R from Philadelphia - pension

* I did not work in either state at the same time.
* I read that in Maryland the state also collects the local taxes.

So,

1) I thought I read somewhere when you move to another state that it matters which state return you do first in TurboTax?

2) Why does it ask if you were a public safety officer, and does anyone know if a 911 dispatcher in Philadelphia is a public safety officer? Could they be asking this to determine if you should have paid in to social security or not?

3) Does anyone know how to correctly reconcile the state taxes in this situation between PA, MD, and PHILADELPHIA? Will entering the two W2's accomplish this, or do I have TT questions to answer correctly too?

4) LOTS OF CONFUSION HERE -- The 1099-R is as follows: box 1, 7900, box 2 7900, box 4 1580, box 5 is zero, box 7 is code 1, box 9b is zero, everything else is blank or not checked.

It's asking me what state I was in when I got the 1099-R?

I don't think I did anything with this pension money from Philadelphia? Who has the 1580 that was withheld in box 4?

Why does it say code 1 in box 7, it's asking me where the distribution is now and did I roll this over and replace the 1580 withheld or not?

Do I need to rollover this 7900, since I don't work anymore in Philadelphia?

Thank you for any and all help!

[fanfare]

you have 60 days from receipt to roll over $7,900 into an IRA

after that it is too late.

The box 4 withholding goes to the IRS.

depending on other factors, you should be eligible for a deductible  IRA contribution of most of that money and that will be similar effect as a rollover.

You report $7,900 on the state return for the state you were in when you got the money

@leeleses 

[leeleses]

Thank you!

If I roll over most of the 7900 to a traditional IRA do I then get to keep the withheld taxes in box 4?

The 7900 is several years of pension payments, this YTD until May when I resigned was 1111 of the 7900 total.

If I do nothing, will that 7900 sit in their retirement account and trigger another 1099-R next year?  Or how does that work?

[fanfare · Accepted solution]

Is your 60-days not over yet?

the best course is to include that $1,580 from other savings so it is all rolled over.

then it is refunded later.  otherwise it is an early distribution from your account. 

if you do  nothing all 7,900  is an early distribution.

@leeleses 

[leeleses]

I'm thinking the 60 days is still in play, I just got this 1099-R  I think I need to call them to see if they cut a check yet for the 6320.

[VolvoGirl]

What year is in the upper right corner on the 1099R?  Is it for 2022?  If you got a 1099R that means it already happened.    You better call them right away and see what happened with the money.  Did you move?  Maybe they sent a check to the old address?  

You have to enter the 1099R in your tax return.  You will get credit for the withholding in box 4 on your 1040 line 25b with all your other withholding.  What code is in box 7?

[leeleses]

Hi, code 1 and yes the check was found now!  UGH!

[leeleses]

And yes, it's for 2022...

[DianeW777 · Accepted solution]

Report the Form 1099-R on your 2022 tax return. Any amount you rolled over, if you were able to accomplish this within the 60 days, will not be taxed and you will answer a question about how much you rolled over when you enter your Form 1099-R.

If you did not do as suggested and take the $1,580 (federal withholding amount) from a savings to add to your rollover, then you will pay tax and penalty on that amount because it is an early distribution (received before retirement age). TurboTax will handle your situation when you answer the questions.

@leeleses