1099-R - Box 2a says "UNKNOWN"

[Jefro573]

I have a client who has a 1099-R from OPM Retirement Operations due to him being injured while serving overseas.  He is on disability retirement from the army because of this incident.  He is 45 years old.  Box 2a says "UNKNOWN".  Box 7 has code 3 for disability. 

Based on my research it appears that I leave box 2a blank as this is not taxable to him due to being injured while serving overseas.  Is that my correct understanding?  

[qbteachmt]

You're going to want a lot of bookmarks for your permanent reference materials:

https://www.opm.gov/faq/retire/You-have-a-calculator-to-determine-taxable-income-for-income.ashx

[Jefro573]

Thank you very much.  Link just sends me to a page with "404 Page not Found".  Is there another link I could try?

[abctax55]

Try again, or maybe a different browser?  The link works for me.

Or, type the link directly into your browser.

[Jefro573]

Thank you.  No, still nothing.  I copied it, typed it and nothing.  Tried all of that in Firefox, Edge and Chrome.  All the same error for some reason. 

I can get to the tax withholding estimator on the IRS webpage.  Is that what I want to use?  I thought this tool was more for making sure enough withholdings are being taken out.  Not to calculate taxable portion of a pension?

[George4Tacks]

Try http://tinyurl.com/52ccjj5t

How old is this person?

Is there anything in any of the other boxes? 

From our very informative TT https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/distribution-nontaxa...

[Terry53029]

If you can't reach the link here is a instruction on the page. 

"f you retired under the disability provision, the disability annuity you receive from CSRS or FERS is taxable as wages until you reach minimum retirement age.  Your retirement contributions are shown on the 1099R form we send you each January for tax filing purposes." 

[Jefro573]

Hello.  That link didn't work either.  So I have no clue whats going on.

They are 45. 

Box 9b - $13,760

Box 1 - $46,149

Box 2a - UNKNOWN

Box 4 - $5,490.22

All others are blank.

[Jefro573]

Thank you.  My confusion comes on rather or not since they were injured while serving overseas and medically claimed to be retired due to disability from this incident, does that make it non taxable to them.  Even if they haven't reached retirement age?  I am thinking it is taxable but how do I go about calculating what portion of the 46,149 is taxable to them?

[PhoebeRoberts]

I don't know why OPM killed the calculator, but I agree that they did.

Pub 721 (https://www.irs.gov/forms-pubs/about-publication-721) has a worksheet.

[qbteachmt]

You might clear your cache, or try a private browsing tab. It's a link to an FAQ, not a calculator.

Just go to:

https://www.opm.gov/

and choose topics.

[Terry53029]

Looks like his full retirement is taxable until he reaches normal retirement age. This is from pub 721.

Disability Annuity
If you retired on disability, the disability annuity you receive
from the CSRS or FERS is taxable as wages until you
reach minimum retirement age, as explained in this section. However, beginning on the day after you reach minimum retirement age, your payments are treated as a retirement annuity and you can begin to recover the cost of
your annuity under the rules discussed earlier.

link to pub 972.  https://www.irs.gov/pub/irs-pdf/p721.pdf

[Jefro573]

I am not sure either.  Thank you.  I will use the worksheet then.

[Jefro573]

Ok, thank you.  I will give that a try then.

[Jefro573]

Ok, thank you.  So once he reaches minimum retirement age he will start to recover the cost of his annuity.  Appreciate all the help. 

[Terry53029]

According to pub 721 you don't need the work sheet, as it is all taxable, and if you check the box 2B " taxable amount not determined" Pro Series will put the full amount in box 1 as taxable

[PhoebeRoberts]

The link that 404s is the calculator link on the FAQ page.