Question

1099 r form causing taxes to escalate after paying taxes on pension

Forum|Forum|5 years ago
February 20, 2021
1 reply
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The software is having a glitch, it is escalating the tax rate. On the TurboTax worksheet, there is a section labeled additional information and rollover Roth and the B4 is marked off as all funds could be transferred and the amount of the pension funds are placed there. I believe this is glitching it to be listed as an additional income and creating more taxes to be paid. Whichever the case, the tax calculation is coming up wrong.

1099

SteamTrain

Employee

Probably not.

Yeah I see that B4 entry...but it doesn't mean anything unless some of the other B boxes have entries. A standard pension isn't eligible for a roll-to-roth anyhow.

______________________

Its really unlikely that there is a problem.

The taxes you had withheld when distributed? They are rarely the exact amount of taxes needed...sometimes they overpay, and other times they under-pay the eventual taxes needed for ALL of your income entries for the entire year.

Take that 1099-R out, and print out your form 1040....then put it back in and print again and compare the forms line-by-line.

1) the Pension income could have increased the % of SS income that gets taxed (if you have entered your SS yet.....if any)

OR

2) .....the pension income could have pushed you into a tax bracket that your pension withholding did not fully cover.

or

3) or the extra income reduced some other tax credit...that you now, no longer qualify for

or

4) a combination of all of those.

Comparing the 1040..line-by-line before and after usually shows what's going on.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*