- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Taxpayer received a 1099-R, showing his $3,000 distribution that was made directly from his retirement to his insurance to pay his premiums. He is a retired firefighter. This distribution should not be taxable and the 1040 guidelines indicate this on page 26. The instructions specifically say to add "PSO" after the taxable amount in box 2a; however, ProSeries Basic doesn't seem to allow this. How should this be done correctly?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This part:
"If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-R doesn't reflect this exclusion. Report your total distributions on Form 1040, 1040-SR, or 1040-NR, line 5a. Report the taxable amount on Form 1040, 1040-SR, or 1040-NR, line 5b. Enter “PSO” next to the appropriate line on which you report the taxable amount."
"Level Up" is a gaming function, not a real life function.
