Make sure that you indicate that you are reporting a RRB-1099-R in the interview
1. Go to Federal Taxes.
2. Choose Wages & Income.
3. Hit "Explore on My Own".
4. Scroll down to "Retirement Plans & Social Security"
5. Select "IRA, 401K, Pension Plan Withdrawals (1099R)
6. Hit Update or Start
7. At the bottom of this page there is a box "Add another 1099R". Check it.
8. On the next page, select "I'll type it myself" and hit continue.
9. The screen you are looking for finally appears. "What type of 1099R is this?" A list of 4 different 1099's appear. The last one on the list is the RRB-1099-R. Select it and you're on your way. Follow the prompts.
10. Relax, try to replant the hair you have pulled out of your head. Have a good day!
The form provided for RRB-1099-R under the Retirement Plans provides a set of questions as if the information is for an annuity. The back of the RRB-1099-R states "Any amounts shown on your Form RRB-1099-R are considered a "normal distribution". Use distribution code "7" if you are asked for a distribution code for those amounts. Railroad retirement payments shown on Form RRB-1099-R are treated as private pensions for U.S. Federal income tax purposes." Turbo Tax does not provide a way to select a distribution code. In order to get Turbo Tax to calculate this correctly, I had to enter a supplemental 1099 form. Without the distribution code, Turbo Tax reduces the amount based on a number of annuity payments.
Secondly, Turbo Tax does not prompt the user to look for a 2nd 1099 form for Railroad Retirement. As I just finished repaying the IRS $2700 for this mistake in 2013 and will probably have to again for the more recent 2014, I am very interested in this being fixed. I have used Turbo Tax for at least 10 years, and use the step by step to insure nothing is overlooked. Now that most of my income is SS and RRB , I would like to know I can count on the calculations and steps being correct.
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