What Information Is on the 1099-R?
There is a list of federal 1099 tax forms which record money allocated to a recipient, including the 1099-INT for interest, the 1099-DIV for stock dividends, the 1099-MISC for miscellaneous income and the 1099-R for retirement distributions, annuities, profit sharing plans or a settled insurance contract. The 1099-R may be sent to you from different establishments, regarding different accounts, and should be included with your annual income tax return.
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Payer
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When you receive a 1099-R from an establishment, you will notice that the name and address of the payer of the funds is in the first box on the 1099-R form. The next box holds the payer’s federal identification number.
Recipient
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The next box to the right of the payer’s federal identification number holds the recipient’s federal identification number, which is usually your Social Security number. Below this is the recipient’s name and address, including the street address, apartment number, city, state and zip code.
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Financial
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The account number of the account the distribution or settlement came from is shown next. At the top of the form in box number 1, in the right-hand column, is the gross distribution amount. This is any taxable amount and nontaxable amount that you received. Box number 2 is the taxable amount only. Box 2b has two boxes, one of them must be checked, either the taxable amount not determined or the total distribution. Box 3 shows the amount of capital gain that was included in the box 2a amount. If any of these amounts are incorrect, you must contact the payer of the funds for a revised copy.
Taxes
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Box 4 shows the amount of federal income tax that was withheld through the previous year.. Federal income taxes previously withheld will reduce the amount of tax owed on your income tax report for that year. Box 12 is the amount withheld for state taxes. Box 13 is the payer’s state tax number. Box 14 is the state distribution amount. Box 15 shows the local tax, if any, that was withheld. States vary in the amount required of the recipient to pay in local taxes for account distributions. Box 16 asks for the name of locality (city), with Box 17 telling how those local funds were distributed.
Contributions
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Boxes 5 through 8 show the various types of contributions made to the account. Box 9a shows your total percentage of distribution, to the total amount of the account. Box 9b shows your total contributions during the year in question, such as direct contributions or insurance premiums. Box 10 is the amount allocated to IRR (Internal Rate of Return). This is the expected rate of growth on the account. The higher the rate of growth, the more advantageous it is financially. Box 11 tells the first year of a Roth IRA, if this is the account that the 1099-R is pertaining to.
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References
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