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RR retiree's Form RRB-1099-R shows employee contrib(cost). Will spouse survivor be able to use remain amount of employee contrib to find her txbl amto

Brian222
Level 1

RR retiree's Form RRB-1099-R shows employee contrib(cost) used in determining txabl pension. Upon his death in a later year, will spouse survivor  be able to use remaining amount of employee contrib to determine taxable  amt on her return

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George4Tacks
Level 15

Maybe? If would depend upon whether the retiree had used all of that amount as an offset to income in the past. What year was the retirement? How much of the benefit was shown as taxable in prior years? Was the 3 year rule used? Was the Simplified Method used? If partially taxable, then the remainder could be used in the year of death, but you should have an accounting of how much was used in prior years. 

https://www.rrb.gov/Benefits/TXB-85/SectionD can give a brief explanation of the complication. 


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George4Tacks
Level 15

Maybe? If would depend upon whether the retiree had used all of that amount as an offset to income in the past. What year was the retirement? How much of the benefit was shown as taxable in prior years? Was the 3 year rule used? Was the Simplified Method used? If partially taxable, then the remainder could be used in the year of death, but you should have an accounting of how much was used in prior years. 

https://www.rrb.gov/Benefits/TXB-85/SectionD can give a brief explanation of the complication. 


Answers are easy. Questions are hard!
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