Posted on Friday, 31st January 2025 by

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The Social Security Administration was the first to send out tax forms again this year. Our 1099 R Tax Forms typically aren’t available by regular mail until late January to early February. Registered users of OPM’s Retirement Services Website can now download their Annuity Statement and 1099 R forms.

 

Update

My last article on taxable earnings included transposed numbers. The statement should have read, “Higher earners will pay Social Security taxes in 2025 on earnings up to $176,100, an increase from last year’s maximum amount of $168,600.” I corrected this on the blog article.

1099 Forms

I received my SSA-1099 on January 14th and downloaded my 1099-R from OPM in mid-January.  Many of our 1099-INT forms are now arriving from banks and credit unions. TSP has your 1099-R forms available for download by the end of January.

For those who purchased Treasury Bills, Notes, and Bonds online at www.TreasuryDirect.gov or cashed in savings bonds on their site, your 1099-INT and OID statements are now available for download.

If you cash in paper savings bonds at your local bank, the cashier gives you a receipt showing the amount of interest earned. This receipt isn’t your 1099; the bank or other financial institution will send you a 1099-INT for the bonds you cash in.

When selling a home, the closing agent typically provides the seller with a copy of the 1099-S form. This form is sent to the IRS and shows the gross proceeds and any real estate taxes paid in the year of the sale. Any capital gains must be reported on the tax return.

Brokerage Forms

Brokerage firms typically send out their Tax Reporting Statements showing interest, dividends, and capital gains or losses towards the end of January to mid-February, later for more complicated accounts. Their consolidated statements include 1099-INT, DIV, MISC, and a 1099-B for proceeds from broker and barter exchange transactions.

Annuity Statements

Federal annuitants typically receive their updated Annuity Statement in early January, with the COLA increase added.

OPM sends out updated annuity statements anytime a change affects our annuity. We will receive another statement showing FEHB healthcare and FEDVIP premium changes in February. New statements are sent out throughout the year whenever there are changes to checking/savings allotments, income tax withholding, long-term care insurance, etc.

This document provides information on annuities and benefits for you and your family. It includes the annuitant’s Claim number, the amount withheld for each item deducted from your annuity payment, and your gross and net payment. It specifies the monthly survivor annuity currently payable in the event of the annuitant’s death and includes an annual Notice of Survivor Annuity Election Rights. You will also find OPM contact information.

This form provides instructions on how to make benefit elections, such as applying for a survivor election for a spouse you marry after retirement or survivor annuity elections for a former spouse.




Estate Planning

I keep the most current Notice of Annuity Adjustment in my retirement folder and include a copy in our estate binder along with OPM’s annuity and FEGLI insurance verification forms that OPM sends out upon request. You can also download these forms from OPM’s site. This is an important document and should be readily available if you or your survivor need to contact OPM or require benefit clarifications.

You must be registered to use OPM’s Retirement Services Website. If you aren’t registered, read the article “Connect to OPM’s Online Services” to understand the registration process and sign up.

Summary

Many banks and brokerage houses’ 1099 and DIV reports are also available online for download early. Treasury Direct doesn’t send out print copies. You must download your Treasury’s OID and 1099 INT statements from your online account.

I’ve used TurboTax software for decades. It’s intuitive, walks you through the entire process, double-checks your work, and allows you to file online. This software can also download and integrate your brokerage accounts into your tax return, saving considerable data entry time. I purchase a copy of Turbo Tax every December and add tax documents, including 1099s, as they come in to save time.

Several free online filing services are available through the IRS, as well as several tax preparation services. The IRS allows you to file online for free if your annual income is $84,000 or less. You will have to file your State taxes separately.

Turbo Tax offers a free tax filing service for Simple 1040 returns (no schedules except for Earned Income Tax Credit, Child Tax Credit, and Student Loan Interest Credits). Roughly 37% of taxpayers are eligible for this service.

Use OPM’s Online Services to download your 1099-R to file your taxes early, replace a lost 1099-R, or obtain other important retirement forms and reports.

Helpful Retirement Planning Tools

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Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Last 5 posts by Dennis Damp

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION | Comments (0)


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