Questions & Answers

Why isn't my pension distribution showing up as taxable income on my return?

You need to check three things. First, make sure you entered the taxable amount of the pension distribution in Box 2a of the Retirement Income (Form 1099-R) screen. The amount entered in Box 2a is what will be treated as taxable pension income.

Second, check the Box 7 distribution code on the Retirement Income (Form 1099-R) screen to make sure you chose the correct distribution code. Generally, the code will be a 1 if its an early retirement distribution subject to the 10% penalty, or it will be a 7 if it is a normal retirement distribution.

Third, make sure you didn't tell us to to treat the distribution as a rollover. On the Distribution Rollover screen right after the Retirement Income (Form 1099-R) screen there is a checkbox that if marked, will treat the entire 1099-R distribution as being a rollover and not taxed. There is also an amount box on that screen where you can specify part of the distribution as a rollover. Make sure those aren't used if the 1099-R wasn't a rollover distribution.

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