1. RETIREMENT INCOME
PUB 4012
Pages D-17 – d-28

2. RETIREMENT INCOME Types of Retirement Income Social Security
Railroad Retirement
IRA
Pension
If taxpayer has a Retirement Income then start as follows
In TaxSlayer, select “Income” on top, then select “IRA/Pension Distributions (1099-R, RRB 1099-R, SSA-1099)”

3. RETIREMENT INCOME
Select this

4. SOCIAL SECURITY Select “Social Security Benefits/RRB-1099”
Always enter Box 5 amount from SSA-1099 on the appropriate line
Enter any Federal withholding from Box 6
Add Medicare A,B,C and D together and enter on Medicare line
If MFJ return, enter spouse’s SS benefits also

5. SOCIAL SECURITY
Select this

6. SSA-1099

7. SOCIAL SECURITY
Taxpayer section
Box 5
Box 6
Medicare
Spouse section

8. LUMP SUM SOCIAL SECURITY
Benefits may include lump sum payments from prior years
Option to include all benefits in the current return or amend prior years for the payments
Amended returns not necessary
Will include tax liability in this year’s return
Taxpayer needs to have prior year tax returns for all years included in the lump sum payment

9. LUMP SUM SOCIAL SECURITY
Taxslayer included ability to calculate the tax liability using both options and will select the best method – Select “Begin Worksheet”
May need multiple worksheets if lump sum is for more than one year
Need “Modified Adjusted Gross Income” from the prior year(s)
AGI plus Tax Exempt Interest

10. LUMP SUM SOCIAL SECURITY
Select this

11. LUMP SUM SOCIAL SECURITY

12. RAILROAD RETIREMENT TIER 1
Top Form of RR Retirement statement
Labeled RRB-1099 and is Blue
Called Tier 1
Social Security equivalent
Enter on “Social Security Benefits/RRB-1099” page
Check box 5 for benefit, box 10 for Fed Income tax, and box 11 for Medicare

13. RRB-1099

14. RAILROAD RETIREMENT TIER 1**
Taxpayer section
Box 5
Box 10
Box 11
Spouse section
** This screen also used to input Tier 1 RR retirement (blue form)

15. RAILROAD RETIREMENT TIER 2
2nd Section of RR Retirement statement
Usually 3 copies
Labeled RRB-1099-R and is GREEN form
Called Tier 2
Select “RRB-1099-R” on the “IRA/Pension Distribution” screen

16. RAILROAD RETIREMENT TIER 2
Select this

17. RAILROAD RETIREMENT TIER 2
2nd Section of RR Retirement statement
Usually 3 copies
Labeled RRB-1099 R and is GREEN form
Called Tier 2
Select “RRB-1099-R” on the “IRA/Pension Distribution” screen
Enter data from Boxes 3, 7, and 9

18. RRB-1099-R 6

19. RAILROAD RETIREMENT TIER 2
Enter here
Enter here
Need to Calculate
Enter here

20. SIMPLIFIED METHOD
RRB-1099-R does not have a taxable box -- must be calculated
If client is a returning client, the simplified method was done the prior year, and the numbers should be the same every year
Otherwise, Click on “Worksheet” under box 7a to use the Simplified Method to determine taxable amount. Information needed
Plan cost
Start date
Joint/Survivor ?
Age

21. SIMPLIFIED METHOD
Click here

23. SIMPLIFIED METHOD
Once all information is entered, the taxable amount will be entered on line 7a and carried over to the Federal 1040
Federal taxable amount of RR Retirement is not taxable in New Jersey
Taxslayer automatically adjusts on NJ return
No preparer action needed

24. IRA DISTRIBUTIONS Reported on 1099-R with check in box 7.
SEP and SIMPLE IRAs are Out of scope
Distributions from traditional IRAs are fully taxable unless nondeductible contributions have been made
Taxpayer will have to know this information
OOS for TCE
Taxpayers who made early withdrawals from a Roth IRA should be referred to a professional tax preparer
To enter in Taxslayer, click “Add or Edit a 1099-R”

25. IRA 1099-R

26. IRA DISTRIBUTIONS
Select this

27. IRA DISTRIBUTIONS
Top part of input form

28. Middle part of input form
IRA DISTRIBUTIONS
Middle part of input form

29. Bottom part of input form
IRA DISTRIBUTIONS
Bottom part of input form

30. IRA DISTRIBUTIONS If box 7 has a code 1 or 7 but a rollover is claimed
IRA Rollover ---Institution to Institution
Box 7 will contain a code G to indicate a non-taxable rollover
If box 7 has a code 1 or 7 but a rollover is claimed
Taxpayer must show that a full amount was deposited in an appropriate account within 60 days
Check top box under “Rollover or Disability” in the middle portion of the input screen
Then enter the rollover amount

31. IRA DISTRIBUTIONS
Check here
Enter rollover here

32. PENSIONS AND ANNUITIES
Determining the taxable amount
Box 7 codes
Disability pensions
Using the Exclusion worksheet
Same as IRA
Using the simplified method
Same as RRB-1099-R
Access under box 2
Use only if 1099-R Box 2a does not have an amount and box 9b does

33. PENSIONS AND ANNUITIES
Special considerations
OPMs---box 5 ---Always Insurance Premiums

34. OFFICE OF PERSONNEL MANAGEMENT
CS A123456
Tom T Jones
123 Main Street
Joppa, MD 21085
Always insurance premiums MD
NONE

35. PENSIONS AND ANNUITIES
Special considerations
OPMs---box 5 ---Always Insurance Premiums
NJ Pensions---box 5 ---Never Insurance Premiums

36. Never insurance premiums
NEW JERSEY PENSION
Never insurance premiums

37. PENSIONS AND ANNUITIES
Special considerations
OPMs---box 5 ---Always Insurance Premiums
NJ Pensions---box 5 ---Never Insurance Premiums
Military Pension---Must modify in State Section for NJ
Not taxable in NJ
Usually from London, KY -- DFAS
Go to the “State Section”, on the State Return page select “Continue”, select “Input Myself”, then “Income Subject to Tax”, then enter the military pension in the appropriate box as a negative number

38. MILITARY PENSION
Select here

39. Enter in correct one as a negative number
MILITARY PENSION
Enter in correct one as a negative number

40. PENSIONS AND ANNUITIES
Special considerations
OPMs---box 5 ---Always Insurance Premiums
NJ Pensions---box 5 ---Never Insurance Premiums
Military Pension---Must modify in State Section for NJ
Usually from London, KY -- DFAS
Not taxable in NJ
Retired public safety officer
Eligible to reduce taxable pension by up to $3000 if part of the distribution was used to pay premiums for accident or health insurance, or for Long Term Care insurance

41. RETIRED PUBLIC SAFETY OFFICER
Check here and manually adjust box 2a on 1099-R

42. RETIRED PUBLIC SAFETY OFFICER
If retired public service officer (PSO) has both health insurance deduction and simplified method, complete the simplified method first, then delete the simplified method worksheet and manually subtract insurance premiums (up to $3,000) from calculated taxable income in Box 2. Deduct excess premiums on Itemized Deductions screen. (Source: 4012 D-19)

43. PENSIONS AND ANNUITIES
Special considerations
OPMs---box 5 ---Always Insurance Premiums
NJ Pensions---box 5 ---Never Insurance Premiums
Military Pension---Must modify in State Section for NJ
Not taxable in NJ
Retired public safety officer
Pension Rule---”…if annuity starting date for any pension is before 1987, you can continue to take monthly exclusion as long as you receive the annuity. Total exclusion can be more than the cost.”
(page 12, Pub 575)

44. Questions ??