Here you will see both Types of 1099-Rs
How to Calculate Taxable Portion -- Penalties for Early Withdrawals & Exemptions -- Rollovers -- Public Safety Officer
& How to Enter Publix 1099-R & 1099-B to avoid doubling income reported
How to Calculate Taxable Portion -- Penalties for Early Withdrawals & Exemptions -- Rollovers -- Public Safety Officer
& How to Enter Publix 1099-R & 1099-B to avoid doubling income reported
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1099-R Retirement Form reports payments received from Pensions, IRAs, Annuities, Disability under Life Insurance, etc
If Box 2a has been calculated-- then a Basic certified person can do this return. If Box 2a IS NOT calculated-- see instructions below (Advanced Certified) 
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RRB-1099R Railroad Retirement Form-actually 2 forms in one
The top portion (Blue form) gets entered as Social Security Income The bottom form (green Form) gets entered in Taxslayer on the RRB-1099 entry screen
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For calculating the taxable portion--see below
How to Calculate the Taxable Portion Using the Simplified Method
1099-R Box 2a is blank AND there is a value in Box 9a-- Use the SIMPLIFIED METHOD TO CALCUALTE THE TAXABLE AMOUNT
When the 1099-R has a blank Box 2a Taxable Amount, AND box 2b is checked 'Taxable Amount not Determined' AND there is an amount in Box 9b 'Employee Contributions' it is up to the tax preparer to calculate how much of the amount received in Box 1 is taxable. View video below for more information and to learn 2 different methods to calculate the taxable portion. I have included a link to the Annuity calculator tool shown in the video as well. For those that want to use Taxslayer to calculate the amount, there is also a link to an age calculator tool as well.
Form RRB-1099-R Box 3 have a value? Read this!!! (Railroad Retirement Green Form)
When Form RRB-1099-R has an amount in Box 3, use the Simplified method to calculate the taxable portion; If there is nothing in box 3, then the whole amount is taxable
Regardless of method used-- add a note to the account for next year!
When the 1099-R has a blank Box 2a Taxable Amount, AND box 2b is checked 'Taxable Amount not Determined' AND there is an amount in Box 9b 'Employee Contributions' it is up to the tax preparer to calculate how much of the amount received in Box 1 is taxable. View video below for more information and to learn 2 different methods to calculate the taxable portion. I have included a link to the Annuity calculator tool shown in the video as well. For those that want to use Taxslayer to calculate the amount, there is also a link to an age calculator tool as well.
Form RRB-1099-R Box 3 have a value? Read this!!! (Railroad Retirement Green Form)
When Form RRB-1099-R has an amount in Box 3, use the Simplified method to calculate the taxable portion; If there is nothing in box 3, then the whole amount is taxable
Regardless of method used-- add a note to the account for next year!
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Short video to learn more and see 2 methods for calculating the taxable portion.
**Update-- Taxslayer has improved their software-- see images below this video--much easier now--less chance of error and NO calculation required for us! 
Now, the software will automatically calculate the recipients age at time they received 1st check from this account, and if you check the box for joint--it will calculate the total of both ages. Sweet!
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Link to the Amazing Tool
Thank you Colorado Taxaide! This till is so very easy and I love the report that comes with it--I like to print it and put in the their file 
Because I was curious, I researched the exclusion amount for Surviving Spouse and learned something else interesting--click picture to see PDF. To learn more see IRS PUB 721 for the official tax law.
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10% early withdraw penalty
Distributions from Retirement accounts may be subject to a penalty if the client is under 59 1/2. There are exceptions to this rule. |
NEW!!!! Exemption for Emergency Withdrawals-- Thank you Pati M. from SWFL for creating this for us!
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Retired Public Safety Officers & Reservists Exclusions-Special Rules
Medical Insurance Pension Distribution Exclusion!! - This tax provision allows eligible retired public safety officers to exclude from their taxable pension income distributions from governmental retirement plans used to pay for health or long-term care insurance premiums. The premiums can be for the retiree, spouse, or dependents. This is an annual election.
For years prior to 2023, the insurance payment had to be paid directly from the pension plan to the insurance providers to qualify for the exclusion. The SECURE 2.0 Act, however, has removed the direct payment requirement, broadening the accessibility of this benefit. Now, retired public safety officers can avail themselves of this exclusion by including an attestation in their tax return that the distribution does not exceed the amount they paid for qualified health insurance premiums for the year.
The exclusion is capped at $3,000 per year, providing a tangible tax relief to those who qualify. To be eligible, individuals must be retired public safety officers, which includes roles such as police officers and firefighters, among others. The individual must have separated from service, either because of disability or after reaching normal retirement age.
It's important to note that any amount excluded under this provision cannot be deducted as a medical expense for itemized deductions. Furthermore, it is not includible as health insurance for calculating the self-employed health insurance deduction. This ensures that the benefit is not double-counted in any form of tax relief or deduction.
For years prior to 2023, the insurance payment had to be paid directly from the pension plan to the insurance providers to qualify for the exclusion. The SECURE 2.0 Act, however, has removed the direct payment requirement, broadening the accessibility of this benefit. Now, retired public safety officers can avail themselves of this exclusion by including an attestation in their tax return that the distribution does not exceed the amount they paid for qualified health insurance premiums for the year.
The exclusion is capped at $3,000 per year, providing a tangible tax relief to those who qualify. To be eligible, individuals must be retired public safety officers, which includes roles such as police officers and firefighters, among others. The individual must have separated from service, either because of disability or after reaching normal retirement age.
It's important to note that any amount excluded under this provision cannot be deducted as a medical expense for itemized deductions. Furthermore, it is not includible as health insurance for calculating the self-employed health insurance deduction. This ensures that the benefit is not double-counted in any form of tax relief or deduction.
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Public Safety Officers can claim exception once they complete 25 years of service under the plan or attain age 50 (whichever is earlier).
Definition of qualified public safety employee include those that work for federal, state, or municipality offering:
Note: Distributions don't have to be from government retirement account: The exception to the 10% additional tax for early distributions applies to distributions made to qualified public safety employees and firefighters covered by private sector retirement plans after separation from service on or after they reach age 50 or with 25 years of service under the plan, whichever is earlier. Above from PUB 721 and PUB 575 Great Article from Jonlyn & Associates, Inc |
Qualified Reservist distributions. A qualified reservist distribution isn’t subject to the additional tax on early distributions. A qualified reservist distribution is a distribution
(a) from elective deferrals under a section 401(k) or 403(b) plan, or a similar arrangement; (b) to an individual ordered or called to active duty (because they are a member of a reserve component) for a period of more than 179 days or for an indefinite period; and (c) made during the period beginning on the date of the order or call and ending at the close of the active duty period. Note: Reservists can choose to recontribute part or all of the distributions to an IRA. If they do, it must be reported on Form 8606 and they can’t take a deduction on their taxes for these contributions. However, the normal dollar limitations for contributions to IRAs don't apply to these special contributions. |
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Rollovers
When a taxpayer has moved money from one retirement account to another, it generally does not get included as income for the tax year. See PDF to learn more about what counts as a rollover, and how to make sure we enter it correctly in Taxslayer. |
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Publix 1099-R and corresponding 1099-B
When a Publix employee or former employee pulls money from their retirement account and its part of the profit sharing account, they generally get 2 tax forms for the same dollar value. I have seen where both these forms were entered exactly as printed by the tax preparer, resulting in double the amount of income being reported on the return.
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