How to Carry The Taxable Amount From Form 1099-R to Line 7 of Form 1040 or 1040A

Disability pensions reported on Form 1099-R is reported as wages on Line 7 of Form 1040 until the taxpayer reaches minimum retirement age. The minimum retirement age is generally the age at which the taxpayer can first receive a pension or annuity if not disabled. If the taxpayer is under age 59.5, the program automatically carries 1099-R to Line 7 of Form 1040 when you specify Code 3 in Box 7. For more information, see IRS Publication 17.

To enter a disability 1099-R in the program when the taxpayer is under age 59.5, follow these steps:

1. Click Add Form on the tax return toolbar. In the Enter Schedule/Form Number Box, enter 1099. When you see 1099-R in the list, click it and the program adds the form to the return.

2. Complete Form 1099-R as usual. The taxable amount appears on Line 7 of Form 1040 or Form 1040A.

To enter a disability 1099-R in the program when the taxpayer is over age 59.5, but under the minimum retirement age, follow these steps:

1. Click Add Form on the tax return toolbar. In the Enter Schedule/Form Number Box, enter 1099. When you see 1099-R in the list, click it and the program adds the form to the return.

2. Complete Form 1099-R.

3. In the Distribution Code Box, specify V as the distribution code.