How to File IRS Form 1099-R?

The 1099-R form is an informational return, which means the taxpayer will use it to report income on their federal tax return. If the form shows federal income tax withheld, attach a copy – Copy B— in Box 4. The total amount paid by PERS (Public Employees Retirement System) during that tax year including the Cost-of-Living-Adjustment (COLA) if applicable. The taxpayer must report amounts from Form 1099-R as ordinary income on lines 4b and 5b of Form 1040.

The additional tax applies to the entire taxable amount of the distribution unless an exception applies. Some common exceptions may include:

• Disability
• Death
• an IRS levy, and
• medical expenses exceeding 7.5% of AGI(Adjusted Gross Income)
• An exception is also met if the payments are made to an alternate payee under a qualified domestic relations (divorce) order.

If the form shows federal income tax withheld attach a copy – Copy B to your tax return in Box 4.

Who Uses Form 1099-R?

• Contract owners who report distributions from their annuities during the previous calendar year will be receiving a 1099-R. For clients enrolled in electronic delivery, notification of 1099-R availability on the website is sent to the email address on record.
• If the contract has joint owners, the 1099-R is issued to the primary owner.
• A 1099-R is also not generally generated on corporate-owned, nonqualified, 401(k), Pension, Keogh, 457(b), or 501(c)(3) not-for-profit, entity-owned contracts or for contracts held by a custodian company. In this case, please contact the respective custodian for your 1099-R.