Form RRB- 1099-R

[Brian EA]

Taxpayer is a Railroad Retiree. His copy B of the 1099R has the following info.
Box 3- Employee Comtributions--9252
Box 4 -Contributory Amount paid-- 2562
Box 7 -Total gross paid--2562
The rest of the Boxes are zero..
It was determined that the 2562 was the taxable income after going through the worksheet.
Taxpayer received CP2000 from the IRS which says that the total(11,000) should be added on to his spouse Social Security benefits so that an additional 2500 would become taxable since their income exceeds 32000.
I cant see how this is possible since they are already paying taxes on the taxable portion of the RR benefits.
Any advice would be much appreciated

thanks
brian

[okie1tax]

Brian, there are 2 parts to a railroad 1099, 1 part is equivalent to social security, the other is equivalent to a pension. What you are looking at is the pension where the taxpayer paid in some "after tax" money and you are computing how much of the total pension is taxable. The social security portion should have shown up on the social security line just as if it were social security.

[Brian EA]

Brian, there are 2 parts to a railroad 1099, 1 part is equivalent to social security, the other is equivalent to a pension. What you are looking at is the pension where the taxpayer paid in some "after tax" money and you are computing how much of the total pension is taxable. The social security portion should have shown up on the social security line just as if it were social security.

Thanks Okie, but where do you pick up that portion of income? It is not on Copy B.
thanks
brian

[Earl]

1099r

Client should have 2 Form 1099. One would be a RRB 1099 for the social security portion and a RRB 1099R for the pension portion.

[Burke]

It comes all on one form, but it is perforated and usually 3 parts, and he may not have given you all the parts. The social security equivalent benefit is on the top part, which says Copy C, For Recipient's Records. If for some reason the TP no longer has that part, you can get a duplicate just like you can from Soc Sec.

[Brian EA]

Thanks Guys. I will get in touch with the client and try to fix it

brian

[Burke]

Sounds like the IRS has already calculated the new tax based on what was reported, so all he probably has to do is pay it.