Is the gross income in box 1 or the taxable amount shown in box 2a of Form 1099-R considered for gross income filing requirements? Have a client with pension income from Ohio Police and Pension Fund with 0.00 shown in box 2a. I know that under certain circumstances these pensions can be completely nontaxable in the nature of workmen's comp. I advised this client that filing would not be required based on gross income included from taxable amount in box 2a. Client received a CP59 notice for not filing a return. If a return is filed no tax is due with nontaxable pension.
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Not sure but would have filed
The taxable amount is sometimes open to interpretation. For this reason I would have filed a return to protect the client in case it turned out that the taxable was understated by the payor. Also, if I had a client with gross rental income of $40,000 and net of negative $1,000 I would file a return based on gross.
I should think the same would apply to a pension.
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