I have some clients who receive a 1099-R with gross wages and taxable amount the same but have the box for "taxable amount not determined" checked. If it has not been determined why do they put the amount in the taxable amount box? What am I missing here? TIA
cliffp
Could be a distribution from a conventional IRA. The fiduciary would have no way of knowing what your basis (if any) in the IRA was.
-- Don EA in Upstate NY
I see your confusion. I would just go with what's called taxable amount and be done with it.
BTW, it's a pension, and not wages.
ChEAr$, Harlan Lunsford, EA n LA
A 1099-R does not report wages, but distributions from a retirement plan. They are simply following the IRS instructions for Form
1099-R, which tell them to do exactly what you see, in the case of a traditional IRA distribution. They check the box because they don't know if you have an after-tax (non-deductible) basis in the account. They put the full amount in box 2a because that is the worst-case default, but if you have information to determine that it is not fully taxable, use it.-Mark Bole
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