Question

Taxable pension income

Forum|Forum|4 years ago
February 28, 2022
1 reply
0 views

Our pensions have always been 100% taxable. This year, Turbo Tax is excluding some of it. $35K worth! Two are normal local and state government pensions, 1 is an IRA my husband inherited from his father, the other comes from a life insurance company, again inherited. Why is some being excluded?

D

DianeW777

This may be happening based on questions that were answered about the pensions. If you know that you have no cost basis in any of the pensions then it should all be taxable. The taxable amount should be listed in box 2a in all Forms 1099-R. Review each of your forms to be sure they have all been entered correctly. Sometimes one incorrect answer can change your results.

Cost Basis:

"Basis" in a retirement plan is also called "cost" or "contribution". In a word, it is the amount of after-tax dollars that the taxpayer contributed to the retirement plan over the years while he/she was employed.

Please update here if you need further assistance.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

S

SweetieJean

Employee

An IRA is not a pension. and the one from the life insurance company might be an IRA or an annuity (qualified or non-qualified), not a pension. Please clarify.