- 6 - The calculations reflected on lines 4, 5, and 9 effectively reduce the amount of the gross distribution received by petitioner during 1999 by a ratable portion of the taxed contributions he made to his retirement plan, as allowed by section 72(b). Petitioner argues in his petition that the “IRS alleges the gross distribution retirement pension amount (Form 1099-R, Box 1) is the Federal taxable amount of my pension for computing my Federal income tax on Form 1040, Line 16a.” We note that the amount of the gross distribution which appears in box 1 of Form 1099-R and which should be on line 16a of Form 1040 is not the amount included in petitioner’s gross income. This amount, while meant to be listed on the Form 1040, does not directly figure into the computation of gross income. The amount included in gross income is the amount which has been reduced to reflect the taxed contribution portion, and which appears in box 2a on Form 1099-R and which should be on line 16b of Form 1040. Because respondent used the proper investment in the contract in his calculation of the portion of the annuity payments includable in petitioner’s gross income, we sustain respondent’s determination in the notice of deficiency. Reviewed and adopted as the report of the Small Tax Case Division.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011