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.
Article ID: 170
Created: Sat, Jul 23, 2016
Last Updated: Wed, Oct 11, 2017
Online URL: //kb.erosupport.com/article-170.html