1099-R Taxable Amount Calculation

Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. is the tax form reporting the income earned through retirement. If you withdrew money from your retirement account, the plan provider will furnish you with a copy of Form 1099-R, reporting the income you earned in total. 

Form 1099-R will show the total distributions along with the taxable amount that needs to be accounted for when filing a federal income tax return. The taxable amount calculation is very simple. Add up the total amounts from the multiple Forms 1099-R you received if any, and figure out gross income. This will enable you to figure out adjusted gross income after filling out the Schedule 1 for the 2024 tax season. 

Make sure to calculate gross income properly so that your tax return is filed properly. If the gross income is calculated wrongly, your whole tax return will have errors since your taxable income isn’t going to be calculated properly. 

But, if you have a Roth IRA or 401(k) you withdrew money from, know that you don’t need to include these in your gross income as you’ve already paid taxes for these contributions. 

How to include Form 1099-R to tax return?

How to attach Form 1099-R to your federal income tax return? How you’re going to attach Form 1099-R to your federal income tax return depends on how you filed your federal income tax return.

For paper Forms 1040, staple Form 1099-R along with other tax forms on the top right or left corner. Only attach the tax forms that you need to attach. If the number of tax forms used for filing your tax return doesn’t allow you to staple the documents, no need for stapling them. Just include every document and that’s enough.

This is quite different for electronically filed tax returns. You don’t need to attach not only Form 1099-R but any other tax form you use to file your tax return.