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I have a 1099-R for income already reported on a W-2. How do a avoid double counting the income?

Forum|Forum|7 years ago
June 1, 2019
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My pension plan distributions are reported on my W-2, along with federal income tax withheld. I also received a 1099-R which must me separately entered in Turbo Tax. It appears that the income is double counted. How do I assure that the income is only counted once?

Best answer by BillM223

The 1099-R is for retirement plan distributions, which are not considered earned income; the W-2 is for wages (earned income) paid to an employee. On the 1099-R, no social security and Medicare taxes are withheld because it is not earned income; whereas both are (for most employees) on the W-2. (note that federal income tax can be withheld on both).

Normally, pension plan distributions are not reported to you as part of your W-2, precisely because you will receive a 1099-R from the plan administrators.

If this W-2 came from your employer, call HR or payroll and ask them to correct your W-2 to remove the pension plan distribution.

Because both the W-2 and the 1099-R have been reported to the IRS, if they are indeed reporting the same income twice, you need to get the issuer of the W-2 to issue a corrected W-2.

P

pmongi01

tax already paid on 1099r

B

BillM223Answer

The 1099-R is for retirement plan distributions, which are not considered earned income; the W-2 is for wages (earned income) paid to an employee. On the 1099-R, no social security and Medicare taxes are withheld because it is not earned income; whereas both are (for most employees) on the W-2. (note that federal income tax can be withheld on both).

Normally, pension plan distributions are not reported to you as part of your W-2, precisely because you will receive a 1099-R from the plan administrators.

If this W-2 came from your employer, call HR or payroll and ask them to correct your W-2 to remove the pension plan distribution.

Because both the W-2 and the 1099-R have been reported to the IRS, if they are indeed reporting the same income twice, you need to get the issuer of the W-2 to issue a corrected W-2.

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