Stumped On Annuity

[taxxcpa]

1099 on Drake

I have Drake and I don't find a CSF 1099-R. So now what to do?

Use the regular 1099 input screen on Drake. You don't need a special 1099 input screen for Civil Service 1099s.

Also use the free online RIA to get details on the simplified general rule or anything else related to handling this client's pension.

[ChEAr$]

that much?

Sue Baby, send me a private e-mail on this board and I will give you the answers. OPM is simply, no complicated rules, we all contributed 7.5% of our salary to the US retirement fund, hence the figure of original contributions. Employees hired after 1984 are under a different system called FERS in which they contribute less but also pay FICA.

Added - Check IRS Pub 721 Tax Guide to U.S. Civil Service Retirement Benefits

7.5 %? Which gubment did you work for? (grin) My wife, recently retired, only had to contribute
7% of her CSR pay.

[ecb34691]

Harlan, my paystubs are so old, they were written with quill pens and have since faded as does our memory, but 7% or 7.5% doesn't matter, many people don't know how to figure the Simplified method. They mostly see 1099R's with both gross and taxable the same. - Right?

[SueBaby]

Harlan, my paystubs are so old, they were written with quill pens and have since faded as does our memory, but 7% or 7.5% doesn't matter, many people don't know how to figure the Simplified method. They mostly see 1099R's with both gross and taxable the same. - Right?

I sent you the private message did you get it? Wanted to know about info on this clients coming Friday morning. Thanks alot.

[ecb34691]

see private mail

[ChEAr$]

Civil service 1099r's

Harlan, my paystubs are so old, they were written with quill pens and have since faded as does our memory, but 7% or 7.5% doesn't matter, many people don't know how to figure the Simplified method. They mostly see 1099R's with both gross and taxable the same. - Right?

Still do for those who retired after Civil service was told by the service to do the calculations
about..... oh... 4 years ago? maybe 5?

However clients who when they started retirement had to use the old percentage method until they recovered full basis are dying out. (literally) and I don't think I have any of them left.

And don't forget those who retired under the old three year rule; remember?
One client retired, thus would have no taxable income for next two years at least, I got him to
fund an IRA for 3000 (plus 250 for wife at that time) for his last year of work, and next year (actually same year as the
return was prepared) he pulled it out after 90 days, resulting in no tax.
Now THAT was a freebie!

[ecb34691]

Harlan, yes my Dad was under the old 3 year rule. He was a "very high Treasury official" and the Commissioner of IRS reminded him at his retirement party that "he didn't need to file a tax return for 3 years." My CSA1099R still shows Taxable Amount = Unknown. The year they tried to do it, IT WAS SO SCREWED! mine was off several thousand - should have used their figure as it would have helped me!