Edward Posted April 7, 2010 Report Share Posted April 7, 2010 Civil service employee had 46000.00 total contributions as shown on the 1099R. He had been recovering the investment over the years and then passed away in 2007. According to page 5-17 of QF, it states that UNRECOVERED cost of annuities is to be recovered on the decedent's last return. Have client that went to J-Hewitt and rather than recover on Sch A (surviving spouse was able to Itemize), they continued to recover the cost on the 2007 and 2008 tax returns. Do we have the option of going either way -- continuing the recovery as was, or should they have taken the balance and placed on Sch A? Thanks Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 7, 2010 Report Share Posted April 7, 2010 It's not an option, JH was wrong. Quote Link to comment Share on other sites More sharing options...
Edward Posted April 7, 2010 Author Report Share Posted April 7, 2010 kcjenkins: I did some more research on this and noticed that in pub 721, page 23 under part V is says under the simplified method that she can continue using the retire's monthly exclusion - and then further down it says the unrecovered cost CAN be claimed as an itemized deduction. So does this mean that we can go either way? I sure never new that. Wow, guess I learn something every day. What do you think? Thanks. Quote Link to comment Share on other sites More sharing options...
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