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General information on Form 1099-R

Changing any of the key entries listed below will affect the outcome on your tax return. The important entries on Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. include Boxes 1, 2a, 2b, 7 (numeric and alpha), and the IRA/SEP/SIMPLE checkbox.

Additionally, if you need to use the Simplified Method, have converted a traditional IRA to a Roth IRA, or have rolled over amounts from an employer plan or a traditional IRA to a traditional IRA, please review the additional information not reported on Form 1099-R and enter any data that applies to your situation. If you use Step-by-Step Guidance, the screens related to the previous situations will only appear if you enter in applicable information.

The IRS allows a housing allowance to retired ministers to the extent the recipient can justify the amount. Should you receive more than you can justify, the excess should be considered taxable.

You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member. Be sure to include the amount received. You should keep documentation in your records to justify the amount of the housing allowance. This subject is covered in IRC Section 107, which you can mention in your statement. As an alternative, you may include this statement with an electronically filed return using the instructions below.

To get the results you are expecting on your tax return, enter the gross amount in box 1, enter the appropriate taxable amount in box 2a, and uncheck Taxable amount not determined in 2b.

You should have received Form 1099-R reporting the distribution.

To report Form 1099-R:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Retirement Plan Income dropdown, then click IRA, 401(K), and pension plan distributions (Form 1099-R).
  3. Click + Add Form 1099-R to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process to enter your information.

To attach the statement to the return which will print when the return is printed and can be sent with the return:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Miscellaneous Topics dropdown, click the Additional Information for Electronic Filing dropdown, then click E-Filing Notes and Explanations.
  3. Enter your exempted housing allowance statement and any other applicable information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.


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