Question

Taxible Amount - government pensions

Forum|Forum|5 years ago
January 30, 2021
1 reply
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I held both a state and federal government positions prior to retirement. I paid into both pension plans until retirement. In the case of federal, I retained federal government health care into retirement. My 1099R in both cases has a calculated taxable amount that is less than the gross amount that I did not determine. Possible sources of this are still paying for the health benefit (as a pretax deduction to my monthly payment) or having paid into the pension plan.

I'm being asked to identify what method was used to determine the taxable amount, as well as a series of questions such as the initial value of the pension at start. I do not have this information. I did not determine it. It has been more than 7 years since I retired.

Should the Turbotax program be modified for these situations?

What do you recommend?

D

dmertz

Employee

It sounds like you inappropriately told TurboTax to use the Simplified Method to calculate a taxable amount different that that indicated in box 2a of the Forms 1099-R provided by the payers. If so, delete and reenter the Forms 1099-R and in the questions that follow indicate that the amount in box 2a is the correct taxable amount.