Question

IRS Publication 721 - US Civil Service Retirement Benefits - Simplified Method Worksheet - CORRECTION

Forum|Forum|2 years ago
April 8, 2024
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Using the Simplified Method, the monthly annuity is made up of Tax-free part that is a return of my cost and the taxable part.

IRS Publication 721, Part II: Simplified Method states to figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. If annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages.

I am using Turbo Tax Premium, WHERE IN TURBO TAX AM I ABLE TO INPUT COMBINED AGES IN FIGURING THE REDUCTION OF THE COST OF NON-TAXABLE PORTION?

Currently Turbo Tax is only taking into account my husbands age and it should be our combined AGES.

Thanks.

TurboTax Live Self-Employed Online

DaveF1006

Yes. Return to your entry and scroll through the section. There should be a screen that will appear that is titled Tell Us About Your Joint Annuity. Here you will say This Annuity Covers more Than one Person. See the first screenshot.

The next screen will instruct you to enter the ages for both of you. See the second screenshot.