2023 IRS 1099R Important Notices

Below is important information regarding your 1099R.  This information was also included in the envelope with your original 1099R copies mailed on January 31st, 2024.

IMPORTANT NOTICES

Connecticut State Income Tax Exemption:

If you are filing CT State Taxes, you may have an income tax exemption. Taxpayers who receive income from the Connecticut Teachers’ Retirement Board are allowed to exempt 100% of that income from Connecticut income tax on Line 45 of the Connecticut return per Special Notice 2022(4), 2022 Legislative Changes Affecting Income Tax. Connecticut law does not allow a double benefit for the same income. For taxable years beginning on or after January 1, 2021, retired teachers may claim the pension and annuity subtraction modification (if their adjusted gross income is below the applicable thresholds) or the teachers’ pension subtraction modification on their Connecticut Teachers’ Retirement System Income. Under prior law, retired teachers could only claim the teachers’ pension subtraction, and not the pension and annuity subtraction, on their Connecticut Teachers’ Retirement System income. Please see the CT-1040 Connecticut Resident Income Tax Return instructions: Line 48b for further information and an example, call DRS directly at (860) 297-5962 or contact your tax advisor for more information and how this may apply to your individual circumstance.

Chapter 167a Sec. 10-183v Reemployment of teachers:

If you have retired and are receiving retirement benefits from the Teachers’ Retirement System, then you are subject to statutory limitations. If you are employed as a retiree in a position covered under TRB, you are required to submit the appropriate forms with TRB to continue employment. Please visit the Post Retirement Reemployment section of our website for more information. Any questions, please contact TRB.PRR@ct.gov.

TRB Sponsored Health Insurance Premiums Paid for Calendar Year from Monthly Pension Benefits

• Retirees who receive payments by direct deposit - health premiums are found on your December Benefit Change Notification

• Retirees who receive payments by check - total health premiums paid are found on your December check stub

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1099R FAQS

The TRB does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only.

How do I change my withholding? Both Federal and CT Tax Withholding change forms can be found on our website under “Retired Teacher: Forms”. For Federal Tax, please refer to the IRS Tax Withholding Estimator. As for CT Tax, you can find what withholding code you previously had by reviewing your last check/deposit advice or EFT letter to make any adjustments. There is also a W-4P calculator available through DRS at https://www.dir.ct.gov/drs/Calculators/W4PCalculator.htm.

What is Box 2b? If “Taxable amount not determined” is checked then the CTRB did not have all of the necessary information to determine the taxable amount. In this case, you will be required to determine the non-taxable amount yourself. You may find additional information on how to calculate the non-taxable portion of your benefit in IRS Publication 575, or by referring to our “Taxability of your Retirement Benefit” bulletin, available on our website under “Retired Teacher: Publications”.

What is Box 5? This is the portion of after-tax money you are entitled to exclude from your Gross Distribution (in Box 1) for the calendar year. It is equal to the difference between your taxable amount (in Box 2a) and the total Gross Distribution (in Box 1). If there is an amount in Box 5, it means that, when you began to receive your benefit, you had “after-tax” money in your account—money that you had already paid taxes on.

 

Visit our website for 1099R FAQs for Retired Teachers or email TRB.1099@ct.gov.

You may also request that your 1099R be emailed to you by visiting our 1099R Statement Center.

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