What is Retirement Income? (continued)
If Form 1099-R is for an IRA-type distribution, it will be indicated in box 7.
The 1099 forms indicate information such as the amount received, the taxable portion, and the taxpayer's cost (investment) in the plan.
If the taxable amount is indicated, Basic certified volunteers can complete the return. In general, if the taxable amount is not indicated, volunteers with Advanced certification must calculate the taxable portion using the Simplified Method Worksheet covered later in this lesson.