turbo tax tax questions Retirement 1099-R

[2ball]

I retired in 10/1/22 and received a government pension for 3 months. I received a 1099-R for the last 3 months and a W-2 for the first 9 months. entering the W-2 is easy. Entering the 1099-R is confusing me.

some of the questions seem to apply to people doing an ira distribution.

Turbo tax is asking how much was withheld to pay for health insurance. That number is not listed on my 1099-R. I can figure it out because I know what it is a month. Do I just add it myself? The money I pay for health insurance lowers my taxable income?

Turbo Tax is asking if I have scheduled distributions. It's a pension, so I get paid every month, but it doesn't seem like they are talking about pension payments. It's confusing.

I also got another 1099-r for a direct rollover. The taxable amount says $0. I don't need to input that one on my taxes right?

[Duckie]

I retired in 10/1/22 and received a government pension for 3 months. I received a 1099-R for the last 3 months and a W-2 for the first 9 months. entering the W-2 is easy. Entering the 1099-R is confusing me.

Consider deleting both the W-2 and the 1099-R. Then start over with the 1099-R. See if you're asked the same questions.

some of the questions seem to apply to people doing an ira distribution.

Is the IRA box next to box 7 checked?

Turbo tax is asking how much was withheld to pay for health insurance. That number is not listed on my 1099-R. I can figure it out because I know what it is a month. Do I just add it myself?

You could add it yourself but I don't understand WHY you would be asked that. I have a pension and health insurance is withheld from the payment but that information is not on my 1099-R, just the monthly statements, and is NOT requested by TurboTax.

What is in your 1099-R boxes? My form has entries in boxes 1, 2, 4, 5, 7, 14, and 15.

The money I pay for health insurance lowers my taxable income?

Maybe. Do you itemize your medical costs on Schedule A? Even so I don't know why TurboTax is asking when entering the 1099-R.

Turbo Tax is asking if I have scheduled distributions. It's a pension, so I get paid every month, but it doesn't seem like they are talking about pension payments. It's confusing.

What TurboTax product are you using? I have TurboTax Deluxe download so maybe your version does things a different way.

I also got another 1099-r for a direct rollover. The taxable amount says $0. I don't need to input that one on my taxes right?

You need to enter the information in TurboTax. It won't change your taxes but the IRS will get a copy and if theirs doesn't match your return you will get a CP2000 notice.

[jebmke]

You could add it yourself but I don't understand WHY you would be asked that. I have a pension and health insurance is withheld from the payment but that information is not on my 1099-R, just the monthly statements, and is NOT requested by TurboTax.

This is asked because Public Safety Officers can reduce the taxable amount on their pension by up to $3,000 if their health insurance is paid by their pension. It is a great benefit for PSOs because it reduces AGI (similar to QCDs) and doesn't require itemizing.

[Duckie]

This is asked because Public Safety Officers can reduce the taxable amount on their pension by up to $3,000 if their health insurance is paid by their pension. It is a great benefit for PSOs because it reduces AGI (similar to QCDs) and doesn't require itemizing.

Thanks. I had no idea.

[pahkcah]

Turbo Tax is asking if I have scheduled distributions. It's a pension, so I get paid every month, but it doesn't seem like they are talking about pension payments. It's confusing.

They are asking about pension payments. Check the bullet that says you, "...got regular payments from this retirement account."
I'm using TurboTax Deluxe download. It's the same if you are using the disc version.

[retiredjg]

Turbo tax is asking how much was withheld to pay for health insurance. That number is not listed on my 1099-R. I can figure it out because I know what it is a month. Do I just add it myself? The money I pay for health insurance lowers my taxable income?

This only applies, even for a public safety officer, for health insurance from your previous employer that is deducted from your pension check. If you are a PSO, it should be listed on your 1099 R.

If you are paying for your health insurance another way - from your income or out of savings - it does not apply.

Turbo Tax is asking if I have scheduled distributions. It's a pension, so I get paid every month, but it doesn't seem like they are talking about pension payments. It's confusing.

Your instinct that it does not apply is correct. This is confusing if you are asking about the "periodic payment" question. Yes, your pension is a payment that is made periodically, but they are referring to a SEPP agreement (substantially equal periodic payments) which is something you do to get money out of IRA prior to age 59.5.

I also got another 1099-r for a direct rollover. The taxable amount says $0. I don't need to input that one on my taxes right?

Yes, I think you should input it on your taxes. But it will not add to the taxable income.

[2ball]

I retired in 10/1/22 and received a government pension for 3 months. I received a 1099-R for the last 3 months and a W-2 for the first 9 months. entering the W-2 is easy. Entering the 1099-R is confusing me.

Consider deleting both the W-2 and the 1099-R. Then start over with the 1099-R. See if you're asked the same questions.

some of the questions seem to apply to people doing an ira distribution.

Is the IRA box next to box 7 checked?

Turbo tax is asking how much was withheld to pay for health insurance. That number is not listed on my 1099-R. I can figure it out because I know what it is a month. Do I just add it myself?

You could add it yourself but I don't understand WHY you would be asked that. I have a pension and health insurance is withheld from the payment but that information is not on my 1099-R, just the monthly statements, and is NOT requested by TurboTax.

What is in your 1099-R boxes? My form has entries in boxes 1, 2, 4, 5, 7, 14, and 15.

The money I pay for health insurance lowers my taxable income?

Maybe. Do you itemize your medical costs on Schedule A? Even so I don't know why TurboTax is asking when entering the 1099-R.

Turbo Tax is asking if I have scheduled distributions. It's a pension, so I get paid every month, but it doesn't seem like they are talking about pension payments. It's confusing.

What TurboTax product are you using? I have TurboTax Deluxe download so maybe your version does things a different way.

I also got another 1099-r for a direct rollover. The taxable amount says $0. I don't need to input that one on my taxes right?

You need to enter the information in TurboTax. It won't change your taxes but the IRS will get a copy and if theirs doesn't match your return you will get a CP2000 notice.

box next to box 7 is not checked IRA/SEP/SIMPLE
my 1099-R has the same boxes filled in as you.
Box 7 has the number 2, "early distribution exception applies"
I have turbo tax deluxe also

[2ball]

You could add it yourself but I don't understand WHY you would be asked that. I have a pension and health insurance is withheld from the payment but that information is not on my 1099-R, just the monthly statements, and is NOT requested by TurboTax.

This is asked because Public Safety Officers can reduce the taxable amount on their pension by up to $3,000 if their health insurance is paid by their pension. It is a great benefit for PSOs because it reduces AGI (similar to QCDs) and doesn't require itemizing.

thanks, I am a retired PSO.

[2ball]

\

So this looks like the only option to pick for a 1099-R. the first Bullitt IRA, 401(k) pension plan. Correct?

and



This is where they ask about periodic payments and explain what they are.

[retiredjg]

\

So this looks like the only option to pick for a 1099-R. the first Bullitt IRA, 401(k) pension plan. Correct?

Yes.

and



This is where they ask about periodic payments and explain what they are.

Reading this, it seems you would check "yes" if you get monthly checks from a pension plan. I'm pretty sure I've always checked "no" for this (I have a pension). My taxes do come out right. I wonder if it makes a difference.

[retiredjg]

thanks, I am a retired PSO.

It appears from this that there are a couple of reasons a PSO might be excluded. This is a link from TaxSlayer Pro.

https://www.socxfbi.org/common/Uploaded ... orPSOs.pdf

Also note that long term care is included (if paid from the pension plan) and I have seen a case where ordinary insurance shows up on the 1099 but the long term care does not.

[jebmke]

thanks, I am a retired PSO.

It appears from this that there are a couple of reasons a PSO might be excluded. This is a link from TaxSlayer Pro.

https://www.socxfbi.org/common/Uploaded ... orPSOs.pdf

Also note that long term care is included (if paid from the pension plan) and I have seen a case where ordinary insurance shows up on the 1099 but the long term care does not.

The PSO deduction can only exclude what is coming directly out of the pension. If paid separately (directly), the cost can be itemized but not used as an adjustment of the retirement amount -- but is subject to the normal limitations of itemizing.

[retiredjg]

thanks, I am a retired PSO.

It appears from this that there are a couple of reasons a PSO might be excluded. This is a link from TaxSlayer Pro.

https://www.socxfbi.org/common/Uploaded ... orPSOs.pdf

Also note that long term care is included (if paid from the pension plan) and I have seen a case where ordinary insurance shows up on the 1099 but the long term care does not.

The PSO deduction can only exclude what is coming directly out of the pension. If paid separately (directly), the cost can be itemized but not used as an adjustment of the retirement amount -- but is subject to the normal limitations of itemizing.

That's the point I'm making although not very well. Both the health insurance and LTC came directly out of the pension, but the LTC did not show up on the 1099. I don't know why.

[jebmke]

thanks, I am a retired PSO.

It appears from this that there are a couple of reasons a PSO might be excluded. This is a link from TaxSlayer Pro.

https://www.socxfbi.org/common/Uploaded ... orPSOs.pdf

Also note that long term care is included (if paid from the pension plan) and I have seen a case where ordinary insurance shows up on the 1099 but the long term care does not.

The PSO deduction can only exclude what is coming directly out of the pension. If paid separately (directly), the cost can be itemized but not used as an adjustment of the retirement amount -- but is subject to the normal limitations of itemizing.

That's the point I'm making although not very well. Both the health insurance and LTC came directly out of the pension, but the LTC did not show up on the 1099. I don't know why.

I don't know. I've seen plenty of cases where nothing shows on the 1099-R but the taxpayer has a letter from the pension provider stating that an amount $xyz was paid out of the pension payment for health insurance. In fact, I had one case a few years ago where the taxpayer showed me the letter and we found that prior preparers had not known what to do with it and ignored it. I filed amended returns for all the years I could and he recovered a bundle.

[2ball]

Important points:
• The taxpayer retired either because of a disability or they reached their
normal retirement age.
• The retirement plan must be a governmental plan that is a qualified trust or
a section 403(a), 403(b), or 457(b) plan.
• The distribution must be from a retirement plan maintained by the
employer from which the taxpayer retired as a public safety officer and
cannot be from some other retirement plan.
• The distribution must be made directly from the plan to the provider of the
accident or health plan or long-term care insurance contract.
• The election can only be made for amounts that would otherwise be
included in income.

this is from the taxslayer link.
"• The retirement plan must be a governmental plan that is a qualified trust or
a section 403(a), 403(b), or 457(b) plan."

Which of these does my government PSO pension fall under? its not a 403 or 457, is a pension a qualified trust?

[retiredjg]

Seems like it would have to be a qualified trust.

[2ball]

Seems like it would have to be a qualified trust.

Yes, I see that now, defiantly a Qualified trust.