Form 1099-R; Retirement Income & Early Withdrawal Penalty

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Although we do our best to maintain this information and keep it current, tax laws are constantly changing, supported forms/documentation can change at anytime. We can not guarantee the that the information is current. You will always find the most up-to-date information on the IRS website or applicable State website.

Use this page as a guide when entering a Form 1099-R into the program. You will also find a Troubleshooting System Errors and System Limitations, and Information on the Early Distribution Penalty in regards to how to find it and where it can be edited.

There are two ways to add Form 1099-R & Exemption Page.

Option A: Add Forms Page

Select "Edit Return" on the Summary Page.
Scroll through the list of supported Forms and Schedules and select Form 1099-R & Exemption Page.
Then click "Add Forms".

Option B: Add from the Income List

Select "Income" to expand list.
Click "Add Income Form".
Locate and Select "Form 1099-R & Exception Page" from the list of income forms.

Entering Form 1099-R

Enter the Payer Federal Identification Number (EIN) of the Form 1099-R.

Enter the Payer Address. Click "To enter a Foreign Address" link to change the address entry boxes.

Select Save and Continue when finished.

Form 1099-R Input Page

Enter the information into the corresponding boxes of the Form 1099-R.

Type of IRA

You must select what the Form 1099-R is from (Traditional or Roth IRA, SEP/SIMPLE, or not an IRA).

Override for Taxable Amount

When the Taxable Amount Form 1099-R is blank (box 2a). You must “Override Taxable Amount” and enter the taxable amount.

Rollovers & Roth Conversions

Enter any amount of the distribution rolled-over that does not have code "H" or "G" in box 7.

Rollovers to a Traditional and Roth IRA's are entered into the "Rollover Amount" box.

Enter in this box any rollover amount that was converted to a Roth IRA into the "Roth Conversion Amount" box

Other Details

Disability Pensions Before Retirement Age:

(Employer Paid Disability Income) Check the box to treat the Form 1099-R income as wages when a Distribution is a Disability Pension, Code 2 or Code 3 will be in box 7 of the Form 1099-R. If retirement age set by the employer/payer has not been reached.

Bona Fide Retirement Payment:

Check this box if this payment is considered to be a bona fide retirement payment.

Current Year Taxable Amount for Code P:

Enter the current year taxable amount of the Distribution that has Code "P" in box 7 of the Form 1099-R. Do not use this box if box 7 is code 8 (excess deferrals).

Distributions Treated as Wages

Distribution Code 3; Employer Paid Disability Income:

When retirement age has not been reached, disability distributions are treated as earned income, and the taxable amount will be included with wages (form 1040, line 7). Once retirement age is reached, disability distributions are treated as normal distributions, and the taxable amount will be included with pensions (form 1040, line 16b). (Distribution Code 3 retirement age is determined by the taxpayers Employer and can be before or after age 59-1/2)

Distribution Code 8, 8 A, 8 1, 8 2, & 8 4 (Excess Contributions Plus Earnings/ Excess Deferrals)

When box 7 has a code "8" the taxable amount (box 2) is treated as ordinary income, and will be included with wages (form 1040, line 7).

Anytime "code 8" has either an "A", "1", " 2", or "4" next to it, the taxable amount (box 2) the “Double Taxation Rule” is required.

Double Taxation Rule:

This is when the taxable amount (box 2) is included in your ordinary income (form 1040, line 7) and included in your pension income (form 1040, line 16b) in the same year.

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