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tableclocks
Jan 29, 2016, 10:30 PM
Gross income 22,000 on 1099r, plus 40,000 of my income added, total of 62,000, 1099r on the 22,000, has a box 17 of 11,980.00, a pick up contribution, do I pay tax on that which is part o the 22,000, or does it get deducted?
Deducted on the fed or on md state tax? Thanks for your help and time. By the way, I may use tax act, program like turbo tax, is that safe to use on the computer? Thank you,, Richard...........I have a code 2 in box 7, wife went on disability at age 58

AtlantaTaxExpert
Jan 29, 2016, 11:15 PM
On MY TaxAct program (which, by the way, is perfectly safe for your computer), BOX 17 of the Form 1099-R shows local distributions. That indicates for locality that has income taxes (like New York City) how much of the $22,000 is taxable by the locality.

It is NOT a direct deduction.

However, the taxes paid to the locality IS an itemized deduction on Schedule A.

tableclocks
Jan 29, 2016, 11:22 PM
Interesting, it goes under tax paid on line 8? Thank you, hope the tax act picks it up OK
?. thank you

AtlantaTaxExpert
Jan 30, 2016, 10:20 PM
Glad to help!