On Form 1099-R, a box below box 7 says Check if disability and the taxpayer are disabled. Disability pensions for taxpayers under the minimum retirement age are carried to the 1040 and are considered earned income. This is according to IRS instructions. Please see IRS Publication 17 if you are unsure whether the taxpayer qualifies for this treatment of pension income.
Remove the X below box 7 if the pension is not for disability.
This information applies to all years of the UltimateTax software.
Comments
Article is closed for comments.