Form 1099-R

Form 1099-R


Tax Slayer entry:

Federal Section > Income > IRA/Pension Distributions > Add or Edit a 1099-R

  • See the Form 1040 – Income resource page for more information and scope issues.
  • If the Taxable Amount is not specified, you must determine it and enter it manually. (Default is the full amount – do not leave blank to match the taxpayer’s 1099-R.) If part is non-taxable, reduce the taxable amount:
    • For annuities/pensions… 
      • After-tax contributions:
        • This should come first because the other exclusions could be taken elsewhere.
        • Use the Simplified method (Annuity/Pension) to determine the amount to exclude.
      •  Public Safety Officer (PSO) insurance:
        • Must be paid to the institution by the IRA/Pension custodian to qualify.
        • Limited to $3,000 of accident, health or LTC insurance.
        • Claim any excess as an itemized medical deduction on Schedule A.
        • The spouse of a deceased public safety officer does not get the exclusion.
    • For IRAs…
      •  After-tax contributions:
        • Use Form 8606 Part I to determine the amount to exclude.
        • Form 8606 is found at Deductions > Adjustments > Nondeductible IRAs
      • Qualified Charitable Distribution (QCD):
        • Must be paid to the institution by the IRA/Pension custodian to qualify.
        • Limited to $100,000 per taxpayer.
        • Do not include any amount claimed as a charitable contribution on Schedule A.
        • If the funds were received by the taxpayer and subsequently paid to the institution, it is not a QCD and should be deducted on Schedule A.
      • Health Savings Account (HSA) funding:
        • Must be paid to the institution by the IRA/Pension custodian to qualify.
        • Limited to the HSA funding limit for the year.
        • This can only be done once.
        • Do not include any amount claimed as an adjustment to income as an HSA contribution.
        • If the funds were received by the taxpayer and subsequently paid to the institution, it is not qualified and should be deducted as a contribution to an HSA.
    • For either…
      • If the distribution is for  public safety officer insurance, contribution to an HSA, or to a charitable institution, also check the box in the Federal Section > Income > IRA/Pension Distributions > Nontaxable Distributions TS page.
  • Income reported on this form appears on Form 1040 line 16 – Pensions and annuities.
  • Federal tax withheld appears on Form 1040 line 62 – Federal income tax withheld.

Box 5:

  • The amount in box 5 may have already reduced the gross distribution amount (box 1) as reflected in the taxable amount (box 2a).
  • If not, any amount representing accident, health and long-term care insurance premiums should be entered  as a Medical Expense on the Federal Section > Deduction > Itemized Deductions > Medical and Dental Expenses TS page.

Box 7:

  • Check the list of Distribution codes to verify that the code is in scope.
  • If the code is “1” (Early distribution, no known exception), check the exception code list for possible exceptions that the issuer may not have known about. The exception code will be entered in the Federal Section > Other Taxes > Tax on Early Distribution (Form 5329) TS page.
  • if the code is “3” and this is an early distribution due to disability, be sure to check the box on this form to move it to 1040 line 7.
  • If the code is “G” or “H”, change the taxable amount to 0 and check the rollover box lower in the form and enter the amount in the new box that appears.
  • If the code is “J” and if no exceptions, TaxSlayer suggests completion of Part III of Form 8606 which continues to be out of scope, but that can be ignored. Form 5329 is required.
  • If the code is “Q”, it is a non-taxable distribution from a ROTH IRA. The distribution amount automatically fills in the taxable amount – be sure to zero it out.
  • If the distribution is from an IRA to which non-deductible contributions have been made, a portion of the distribution may not be taxable. Use Form 8606 Part I to figure the taxable amount on the Federal Section > Deductions > Adjustments > Nondeductible IRASs (Form 8606) TS page.

Box 9b:

  • If there is an amount in box 9b and box 2b (Taxable amount not determined) is checked, you must use the Simplified Method to determine how much of the Gross distribution is taxable. Use the TS Simplified Method calculator or our Annuity Calculator to determine the taxable amount.
  • If other amounts are excluded due to contributions to an HSA or as a Qualified Charitable Distribution (QCD) or as a public safety officer, you may use the TS Simplified Method calculator to determine that exclusion, but then delete it and subtract additional exclusions from that amount manually.
  • CAUTION: If there is also an amount in taxpayer’s box 2a (Taxable Amount), do not complete the simplified method worksheet. The payer has done this already.