2023 Form 1099-R: Reporting of disability annuity payments to first responders and other disabled taxpayers
Internal Revenue Service (IRS) sent this bulletin at 03/15/2024 10:49 AM EDT
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2023 Form 1099-R: Reporting of disability annuity payments to first responders and other disabled taxpayers The IRS made changes to the 2023 Instructions for Forms 1099-R and 5498 to help clarify how to report disability annuity payments to first responders or other taxpayers on the Form 1099-R. Revenue Ruling 85-105, 1985-2 C.B. 53 states that disability retirement payments made to a taxpayer - under a workmen’s compensation act or under a statute in the nature of a workmen’s compensation act - as compensation for personal injuries or sickness incurred during the course of employment may not be subject to federal income tax. A new paragraph was added to the 2023 Instructions: Box 2a, Taxable Amount, now references Rev. Rul. 85-105 to help you determine the taxable and/or non-taxable amount of the disability payments. If the annuity payments are fully non-taxable, there should be a zero in box 2a. A reference to Rev. Rul. 85-105 was added to the Guide to Distribution Codes: Code 3 – Disability, is used to report the non-taxable part of the disability distribution on the Form 1099-R. Find answers to many of your retirement plan or IRA questions at IRS.gov/Retirement. If you need help with an account-specific question, basic information about retirement plan forms or the status of pending applications, call our Customer Account Services at 877-829-5500. For the latest retirement plan news, connect via IRS Social Media and subscribe to this and other IRS newsletters. This message was distributed automatically from the mailing list Employee Plans News. Please do not reply to this message. |
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