Disability Retirement Benefits prior to reaching the minimum retirement age

Forum|Forum|1 year ago
January 2, 2025
2 replies
11 views

In the Lacerte Tax Program, how & where do you enter the data for a client that is receiving Disability Retirement Benefits prior to reaching the minimum retirement age to qualify for the Earned Income Credit???

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J

james2526

Level 3

To enter Disability Retirement Benefits in Lacerte, go to the "Income" section, and enter the disability benefits under "Wages, Salaries, Tips" or "Pension, Annuities, and IRA Distributions" (Form 1099-R). For Earned Income Credit eligibility, ensure the income is marked as disability-related if applicable, as it can count toward EIC.

K

KennygAuthor

Level 2

When I enter the 1099R in the pension screen and code the distribution as code 3 (disability) it does not calculate the EIC. Is there something else I need to do???

K

KennygAuthor

Level 2

I think I figured it out. On the pension input screen I entered code 3 for disability and then scrolled down to the section "Disability Payments" and checked the box: Report taxable amount as wages (pre-retirement age)

Thank you for your feedback!!

abctax55

Level 15

2023 or 2024 program?

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