1099R on line 7 of 2016 1040

[taxmandan]

New client brings me her 2016 tax return prepared by one of the franchise offices. The preparer put the spouses' OPM disability pension on line 7 not on line 16a. On line 7 it states "Form 1099R". I don't understand why this was done and I can't replicate it in my software to identify the income as 1099R on line 7 and print that message. Can someone enlighten me as to why that would be done rather than just show it as a pension on line 16a? 2016 was the first year of the pension which started in May 2016.


Found the answers, spouse is under normal retirement age, so it goes on line 7, memo to self: check the birthdate. I made a call to my software and they showed me how to enter it so it shows up on line 7.

[kathyc2]

New client brings me her 2016 tax return prepared by one of the franchise offices. The preparer put the spouses' OPM disability pension on line 7 not on line 16a. On line 7 it states "Form 1099R". I don't understand why this was done and I can't replicate it in my software to identify the income as 1099R on line 7 and print that message. Can someone enlighten me as to why that would be done rather than just show it as a pension on line 16a? 2016 was the first year of the pension which started in May 2016.


Found the answers, spouse is under normal retirement age, so it goes on line 7, memo to self: check the birthdate. I made a call to my software and they showed me how to enter it so it shows up on line 7.

I believe that's the correct way to handle it if disabled person is under minimum retirement age. The advantage is it is earned income for such things as IRA contribution eligibility, EIC, etc.

Your software should have a box to check that client is under retirement age if code is 3 to force it to line 7.