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Know Everything On How To File Form 1099-R On TurboTax

TurboTax is a popular software which allows easy tax filing and preparations. You will find that many businesses of different scale and even self employed individuals make use of this software. The software offers a lot of convenience and the many users of TurboTax can vouch for that. 

One of the many forms that it allows to file is the form 1099-R which is among the many forms of the 1099 series. These forms are to provide tax information related to the non employment income to the IRS. 

If you are looking to file form 1099-R, then this blog will cover the process of filing the form. We will also provide you with an overview on the other forms of this series.  

What Is Form 1099?


The 1099 forms are for taxpayers so that they can provide relevant input to the IRS (Internal Revenue Service) on receiving various non-employment income types in a tax year. The type of non-employment income can be in the form of bank interest, investment dividends, freelance income, etc. 

The ones who issue the Form 1099 forms should send a copy to the IRS and another copy to the one who is paying taxes or receiving income. Another thing to note is that 1099 forms are usually sent to the payees in February every year.

Relevance Of Form 1099

These forms are helpful to the different taxpayers in the US so that they can report their income to the IRS. They also make it convenient for the IRS to collect taxes. 

The IRS refers to Form 1099 as an “information return” and only includes incomes from independent contractors or IRA distributions, which are the types of non-employment income. 

Types Of Form 1099

There are different types of 1099 Forms, and each has a specific utility and function. Let’s get you familiar with the Form 1099 types. 

Form 1099-DIV: Dividend And Distributions

This Form is available to stock owners or mutual fund owners who are getting dividend income from them. If you fall in this category or a similar category of dividends and distributions, you are eligible to file Form 1099-DIV.

Form 1099-INT: Interest Income

File this Form if you have a bank account which is either a checking account, savings account, or some other bank account where you earn interest. 

Form 1099-MISC: Miscellaneous Income

This Form is for those who do not fall into the above two categories. It includes anyone who has worked as an independent contractor or is a freelancer with many clients. Any client who has paid you ≥ $600 should send you Form 1099-MISC. 

Form 1099-R

Form 1099-R: Distributions from pensions, annuities, retirement or profit-sharing plans, insurance contracts, IRAs, etc. It is the full name for Form 1099-R. Anyone who received ≥ $10 from a retirement income source or an IRA is liable to receive this Form. In fact, income from any of the plans in the form name can make you eligible for this Form. 

Read More:- What Is Form 8812? How To Fix Schedule 8812 TurboTax Error

Who Is Eligible To File Form 1099-R? 

After reading about Form 1099-R, you may have gotten an idea of the eligibility for this Form. Let us share the details more briefly. 

Anyone who has received an income of ≥ $10 from the following sources can fill out this Form. 

  • Any IRAs (Individual Retirement Agreements)
  • Any retirement or profit-sharing plans
  • Charitable gift annuities
  • Pensions, annuities, survivor income benefit plans, or insurance contracts
  • Permanent and total disability payments that fall under life insurance contracts. 
  • Rollover transfers between retirement accounts

You should also know that Form 1099-R excludes repayment of interest on an individual loan that someone borrows against the retirement account savings. It is because these payments do not fall under a “distribution” category. But, failure in repayment or missing payment is considered an early distribution and reported in Form 1099-R. 

How To File Form 1099-R?

An issuer provides the Form to the recipient, and the IRS also receives one copy. The recipient’s state, city, or local tax department also receives one copy. You have to fill in all the necessary details, such as the name, address, phone number, and TIN (taxpayer identification number) of the payer as well as the recipient. For many individuals, their SSN (social security number) is their TIN.   

How To File 1099-R In TurboTax?

The option of filing this Form in TurboTax makes the process simple and convenient for the users. If you are looking to file 1099-R through TurboTax, follow this process to enter the form manually:

  • Open your return or continue with the option
  • Then you need to select “Wages and Income” in the federal section.
  • Now scroll down in the menu and look for “Retirement Plans and Social Security.”
  • Select the “show more” option and then go to “Start”, in front of the option stating IRA, 401(k), Pension Plan Withdrawals (1099-R)

You can also find the 1099-R section using the search bar by following these steps:

  • Go to the “Search” option in TurboTax
  • Search for 1099-R in the search bar and select “Jump to 1099-R
  • Now, manually enter all the relevant fields of the Form. 
  • You can also import or upload your tax information if you have it already.

In the online version of TurboTax, you can follow these steps:

  • Search for 1099-R in the search box and select “Jump to 1099-R.”
  • Click “Yes” when you get the message “Did you get a 1099-R in 2022?” If you have received it
  • Continue to the “Let’s import your tax info” option and change how you want to enter your Form. 
  • You will see a message stating, “How do you want to add your 1099-R?” You can select the option which is convenient for you. 
  • Now answer the question when you are asked about who gave you the Form and click on “Continue.”

What Is A Distribution Code In 1099-R Form?

There are sections in Form 1099-R that help identify reasons for the funds coming out of retirement. These are called distribution codes and are available in box 7 of 1099-R. 

There are many codes that can be used for that purpose. They are all going to be listed below. 

Code 1: When someone withdraws early from the relevant plan, using Code 1 is common in such cases. Early withdrawal implies that the investor withdraws the funds before they can enter retirement. 

The reason for early withdrawal can differ for different individuals, and they are usually subject to a penalty of 10%.

Code 2: Use of this code is also in the case of early withdrawal. However, there is no 10% penalty for early withdrawal. 

Code 3: This code is used in cases of permanent and total disability. There is an exemption from the 10% penalty in this code as well. 

Code 4: When an account holder dies, this code is used. It is also not subject to a 10% penalty. 

Code 7: This code is for normal distributions and is not subject to a 10% penalty for early withdrawal. 

Code G: This code applies to cases of direct rollover of funds between tax-advantaged accounts. 

Let us make you notice that most of the codes are not subject to a 10% penalty, and that is why it becomes important to fill the Form 1099-R. It ensures that there is no unnecessary penalty or tax. 


Form 1099-R creates a window of opportunity for those individuals who no one directly employs to file returns through the 1099-R Form and other 1099 forms. We hope that the process of filing the Form was clear to you. Look for a TurboTax support service in case you encounter any problems in filing 1099-R in TurboTax software even after following the right steps.

Frequently Asked Questions

1099-R Form can be sent no later than 31 January of any tax year. It is the same for most 1099 forms.   

Anyone who receives Form 1099-R should know about the distributions that are subject to taxation because not all distributions, whether they are from tax-deferred or retirement accounts, are subject to tax.

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