Why are insurance and court ordered deductions not on Form 1099-R?
• These deductions are not required by IRS. • Check your payment stubs for deduction details. • Why does Nontaxable Contributions (Box 5) on my 1099-R Form read “taxable not determined?” Prior to July 1, 1986, the IRS required you to use its General Rule method to calculate nontaxable contributions. However, if you began receiving benefit payments from CalSTRS between July 1, 1986, and November 19, 1996, you had the option of using either the Simplified Method or the General Rule to calculate the tax-free part of the payments. After November 19, 1996, the IRS mandated the use of the Simplified Method. However, because CalSTRS did not know which of the two methods members who retired during the 1986 to 1996 transition period used, we have been reporting “taxable not determined” in Box 5 of your annual 1099-R. Depending on which method you choose to use, you may calculate your nontaxable contributions and exclude them from your taxable income.
Related Questions
- Would my insurance and annuity policies have been protected had AIG been declared insolvent and ordered to be liquidated by a court?
- Who handles the general liability and Workers comp insurance, payroll deductions, taxes and bookkeeping?
- Where do I pay my court ordered fines, restitution and penalty assessments?
