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Level 4
December 7, 2019
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Can a taxpayer with an office of personnel management code 7 pension use the simplified method to calculate non taxable portion of pension? started on 10/2/72 prior7/1/8

  • December 7, 2019
  • 1 reply
  • 11 views

It appears you can not use simplified method to calculate non taxable portion of pension from Office of Personnel management code 7 form 1099 R.  The program on the date started line says must be later than 7/1/86.

Can I use simplified version or some other worksheet to calculate non taxable portion form 05 year old spouse and 96 year old taxpayer.

Husband born 10//2/22

Has Office of Personnel Management Form 1099R Code 7

Box 1  34920 gross distributin

Box 3 1820.88 employee conrtributions

Box 9b Total Employee Contributions

Started receiving pension when 50, 10/2/72


Wife has Office of Personnel Management Form 1099R Code 7

Wife born 11/19/23

Box 1 26892 gross distributions

Box 3 1820.88 Employee Contributions

Box 9 b 13451 Total Employee Conributions

Starts receiving pension when 50,   11/19/73

Again, I am unable to figure out hw to use simplified version at the bottom of the Form 1099-R as the starting date is prior to the program saying must be later than 7/1/86.

Maybe the calculated portion still left to use for non taxable pensions is all used up, so the taxpayers can no longer use the non taxable adjustment.

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Best answer by sjrcpa

If they started receiving those pensions in the 70s they recovered their cost in the first 3 years under the old rules. Everything they receive now is taxable.

1 reply

sjrcpa
sjrcpaAnswer
Level 15
December 7, 2019

If they started receiving those pensions in the 70s they recovered their cost in the first 3 years under the old rules. Everything they receive now is taxable.

The more I know the more I don’t know.