1099-R code 3

[Kea]

90 year-old client receives several 1099-Rs. One is coded "3" for disability and TRX-Pro (I changed software) is carrying amount to line 7 - Wages. Last year, ATX carried it to regular pension line. So, I read the IRS instructions (gee, I hate when that happens). Disability pensions are included in wages until recipient hits retirement age.

So, is the 1099-R wrong and the 90 year-old should now be receiving pension income as code "7"?

or

is TRX wrong to put it on line 7 due to client's age?

or

is TRX correct (and ATX was wrong last year)?

Thanks for your inputs.

[TAXBILLY]

TRX is wrong.

taxbilly

[rfassett]

Check to be sure that you have the taxpayer's date of birth entered correctly for the return. Other than that, I agree with taxbilly.

[Don in Upstate NY]

TRX is wrong.

More like unfamiliarity with new software.

On the TRX 1099-R input form there are two check boxes right next to the Box 7 input area, labeled "Disability". Pressing F1 for Help gives the message ...

Mandatory Retirement Age: Mark this checkbox if the recipient is at mandatory retirement age or older. If this checkbox and the one above for Minimum Retirement Age are NOT marked, the taxable amount will carry as wages to the main form.

Check them both and the disability pension goes to line 16 as it should.

[Kea]

Thanks Don.

It' my 1st year with TRX; there's always a learning curve with new software.

I had called TRX about this and they assured me that carrying it to line 7 was correct because it was disability. They said nothing about the check boxes.

I'm glad there are some TRX people on this board when these questions come up!