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rcsman  
#1 Posted : Monday, January 25, 2010 8:25:01 AM(UTC)
rcsman

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I just downloaded my 2009 CSA 1099R from the OPM on-line services. The first one since I retired.
 
When I retired last May, I left the money I contributed to the CSRS voluntary fund in place and now I get extra money each month from the additional annuity that it purchased.
 
Box 9a on the CSA 1099R form - Total Employee Contributions - does not include the money I contributed to the voluntary fund.  Should it?  Is this a mistake by OPM? 
 
I understand from IRS Pub 721 is that the money I contributed to the voluntary fund is not taxable and the non-taxable portion should be figured according to the simplified method.  Basically I divide the amount I contributed by 360 and that is the tax free part each month.  That is not what the CSA 1099R form shows in box 2a - taxable amount.
 
Does anyone have experience with this when they file their taxes?
 
Thanks for any help/advice.
freeageless  
#2 Posted : Monday, January 25, 2010 9:54:13 AM(UTC)
freeageless

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Yes, I get the additional annuity as well. It shows and has shown nothing in the taxable amount. I use Turbo Tax to compute it. You should put in the total amount of contributions you have made to the voluntary fund, and the amount of contributions that the 1099R shows. Turbo Tax, and I assume the other tax software as well figures the rest of it. The tax software is the easiest way to do it. You are correct in that you use the simplified method. The tax software tells you which method to use, and it uses the simplified method.
rcsman  
#3 Posted : Monday, January 25, 2010 10:20:34 AM(UTC)
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Thanks for the reply freeageless.

I use TurboTax as well.

Do you include a supporting note to the IRS with your tax return to explain the difference in the taxable amount shown on your CSA 1099R in box 2a and the actual taxable amount that TurboTax calculates?

dhacker56  
#4 Posted : Monday, January 25, 2010 10:20:52 AM(UTC)
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I went there tday and could not find where to download it.  help!
rcsman  
#5 Posted : Monday, January 25, 2010 10:25:46 AM(UTC)
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Click on "request a duplicate form 1099-R"
MaleMan  
#6 Posted : Monday, January 25, 2010 6:14:48 PM(UTC)
MaleMan

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To View OPM 1099-R Online:

http://www.servicesonline.opm.gov/

  • Services Online Main Menu
  • Request for Duplicate Form 1099-R
  • View Or Print
  • Select Year Within Drop Down Menu
  • View as PDF or HTML
<font color=RED><em> <center> Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You. </em> </center></font>
freeageless  
#7 Posted : Monday, January 25, 2010 9:41:10 PM(UTC)
freeageless

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I have been retired for the past two years, and I have never sent a supporting note or anything else "to explain the difference in the taxable amount shown on your CSA 1099R in box 2a and the actual taxable amount that TurboTax calculates?" In my case, no taxable amount is shown in my CSA 1099R, and I assume it is the same situation in your case.

Quote from rcsman

"Thanks for the reply freeageless.

I use TurboTax as well.

Do you include a supporting note to the IRS with your tax return to explain the difference in the taxable amount shown on your CSA 1099R in box 2a and the actual taxable amount that TurboTax calculates?"
rcsman  
#8 Posted : Tuesday, January 26, 2010 2:55:41 AM(UTC)
rcsman

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freeageless - My 1099R does show a taxable amount in box 2a. 

This is the first 1099R I have received, maybe this is this first year they have started calculating a number for box 2a?

OPM apparently calculates it using the information in box 9a - total employee contributions.

In my case taxable amount=gross amount - (total employee contributions/360 * 12)

If box 9a is incorrect because it doesn't contain your additional voluntary contributions, then the amount of taxable income that is in box 2a is incorrect and is going to raise a flag (maybe) with the IRS when you file your taxes.

That is why I asked if you provided a note.



freeageless  
#9 Posted : Tuesday, January 26, 2010 5:05:04 AM(UTC)
freeageless

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Rcsman, my 1099R for 2009 states in block 2a exactly what it stated the previous year, "amount unknown." Also block 9a is apparently like yours, in that it does not include the additional voluntary contributions. I file my taxes electronically through Turbo Tax. I don't know whether you can include a note or not. Do you know? However, in the retirement benefits booklet, I received from OPM, it states the amount of voluntary contributions I made. I suppose if the IRS questions it, I could use that as proof.
freeageless  
#10 Posted : Tuesday, January 26, 2010 5:51:45 AM(UTC)
freeageless

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I note that Turbo Tax does have a place to put supporting details, if you right click in a space under the simplified method. It would really be helpful. if OPM would figure this stuff for us. I called them and they said they used to do it, but that they don't do it anymore. freeageless2010-01-26 13:57:27
MaleMan  
#11 Posted : Wednesday, January 27, 2010 2:05:24 AM(UTC)
MaleMan

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freeageless wrote:
It would really be helpful. if OPM would figure this stuff for us. I called them and they said they used to do it, but that they don't do it anymore.

Greetings freeageless,

If OPM did give you that answer, all I can say is all information indicates that the answer is not completely accurate. The information below should address most of the issues of this thread:

Taxable Annuity Amount - If your annuity starting date is after November 18, 1996, and you DID NOT retire on disability, OPM has used the Simplified Method to figure the taxable amount of your CSRS or FERS annuity. This amount is reported on your 1099R in Box 2a.

For ALL OTHER retirees and those receiving former spouse benefits, the Taxable Annuity Amount box will show "unknown." You can choose to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996.

For a detailed explanation of how to determine the taxable portion of your annuity, request Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits, from the IRS. If, after reviewing Publication 721, you need assistance in determining the taxable portion of your annuity, you may request assistance from the IRS.

Voluntary Contributions - If you are receiving additional payments resulting from voluntary contributions to the retirement fund, the additional portion of your annuity due to the voluntary contributions must be reported separately for tax purposes and is shown at the bottom of your 1099-R statement.

Disability Payments - If you retired on disability, payments you receive are fully taxable as ordinary income until you reach minimum retirement age. Beginning on the day after you reach minimum retirement age, your payments are treated, for tax purposes, as a retirement annuity.

At that time, you begin to recover an amount equal to your contributions as tax-free in come under the IRS General Rule as explained in IRS Publication 721.

MaleMan2010-01-27 10:24:00
<font color=RED><em> <center> Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You. </em> </center></font>
freeageless  
#12 Posted : Wednesday, January 27, 2010 3:40:27 AM(UTC)
freeageless

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MaleMan, The amount of money that OPM sent to me from the additional contributions is shown at the bottom of my 1099-R statement per the regulation you quoted below. What is not shown on my my 1099-R statement is the total AMOUNT of my voluntary contributions, and in the taxable amount it states UNKNOWN. The regulations you quoted do not address those issues, thus I can only assume that OPM is not required to compute the taxable income, if you are receiving money from your voluntary contributions under CSRS, and they are not required to show the voluntary contributions, one makes to OPM on the 1099R. I used Turbo Tax to compute the taxable amount under the simplified method. Under additional information in the simplified method, I stated that the voluntary contributions, I made to OPM was not included, and that I was including them on the form in Turbo Tax. I really do not know what else, I could do. If you or anyone else has suggestions, I would appreciate it. Thanks. Also, thank you for the information, you posted above.

"If you are receiving additional payments resulting from voluntary contributions to the retirement fund, the additional portion of your annuity due to the voluntary contributions must be reported separately for tax purposes and is shown at the bottom of your 1099-R statement."


freeageless2010-01-27 11:47:50
bob1092rif  
#13 Posted : Sunday, January 31, 2010 7:49:49 PM(UTC)
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freeageless
"If you are receiving additional payments resulting from voluntary
contributions to the retirement fund, the additional portion of your
annuity due to the voluntary contributions must be reported separately
for tax purposes and is shown at the bottom of your 1099-R statement."

"If you or anyone else has suggestions, I would appreciate it. Thanks. Also, thank you for the information, you posted above. "


How about making out a second 1099-R in Turbo-Tax showing voluntary contributions & distributions?
freeageless  
#14 Posted : Sunday, January 31, 2010 9:36:58 PM(UTC)
freeageless

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Thanks, bob I thought about that, but Turbo-Tax says to do that if you did not receive a 1099R. I received a 1099-R statement.

Quote from Bob

"How about making out a second 1099-R in Turbo-Tax showing voluntary contributions & distributions?"
bob1092rif  
#15 Posted : Monday, February 01, 2010 4:22:32 AM(UTC)
bob1092rif

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Freeageless
"Thanks, bob I thought about that, but Turbo-Tax says to do that if you did not receive a 1099R. I received a 1099-R statement."

 The 1099-R that you received only shows Distributions from Voluntary Contributions so it is incomplete. There should be something similar to 8606  Non-Deductible Contributions to IRA to calculate non-taxable portion of Voluntary Contributions Distributions.
They have enough forms as is and I am trying to Create another. Your way accomplishes the same results I thinkTongue

rcsman  
#16 Posted : Saturday, February 06, 2010 10:45:46 PM(UTC)
rcsman

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It would seem that OPM has a history of confusion with the 1099-Rs:

From 2001: The Office of Personnel Management is moving to clear up confusion
over the taxable retirement income of numerous retirees. Ironically, the confusion appears to have been created by OPM's good intentions.


In a bid to provide enhanced service to retirees this year, OPM
decided to calculate the taxable portion of each retiree's annuity and, for the first time, listed it on an annual statement, the 1099R,
sent to retirees.

For most retirees, the calculation correctly reflected the taxable
income they should report on their tax returns.



But about 800,000 retirees ended up with 1099Rs that showed incorrect taxable income.

From 2003: If You Retired in 2002 . . . Double-check the estimate of taxable income sent
you by OPM before sending in tax returns. An agency spokesman said yesterday
about 56,000 retirees have been given incorrect information. The error involves
people who retired last year. Because of a computer programming error, an Internal
Revenue Service form showing retirement income, known as the 1099-R, omitted
one month of annuity payments. Replacement forms with corrected amounts were mailed at the end of February, the spokesman said.

From the IRS:OPM Reporting — Problems may arise in
connection with Form 1099-R issued from Office of Personnel Management
(OPM). Prior to the year 2000, OPM reported the gross pension
distribution on Form 1099-R to the participant spouse. The participant
spouse then reported the gross amount of distribution as pension income
and deducted the amount apportioned to the non-participant spouse as
alimony. In the year 2000, OPM started issuing separate Form 1099-R to
the participant spouse and non-participant spouse showing their
respective distributions. The plan participant spouse was not notified
of the change. Consequently, the participant spouse continued to deduct
the apportionment, thereby creating a double deduction. A copy of both
the front and back of the Annuity Statement must be received to verify
the taxpayer claimed the entire pension amount.
FrankV  
#17 Posted : Monday, February 08, 2010 3:17:21 AM(UTC)
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Up to and including 2007 the old CSA 1099R  showed Gross and Taxable. The new form from 2008 on taxable amount  is "unkown". I made some calls with retirement at the time but nobody seemed to now anything about the change. I compared the TurboTax calculation with my estimate for 2008 and they agreed. So now I let TurboTax handel it.
 
FrankV
freeageless  
#18 Posted : Monday, February 08, 2010 6:31:55 AM(UTC)
freeageless

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Frank, I concur. I did the same thing.

Quote from FrankV

"I compared the TurboTax calculation with my estimate for 2008 and they agreed. So now I let TurboTax handle it."freeageless2010-02-08 14:37:13
postalvet  
#19 Posted : Tuesday, February 09, 2010 1:05:49 AM(UTC)
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Thanks: 8 times
Was thanked: 9 time(s) in 7 post(s)
This web site will also calculate the tax free part.
 
Retired postal worker of 38 years who is willing to help even though some do not want to hear the truth.
postalwiz  
#20 Posted : Tuesday, February 09, 2010 2:54:51 AM(UTC)
postalwiz

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The brochure from OPM you received when you retired has the tax exempt amount of your annuity.
You do not have to re-calculate every year, it is always the same.  As for OPM showing the tax
exempt of your annuity in your 1099R, not so, mine still says unkown.
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