Sign Arizona Claim Secure

Document type sign claim arizona secure

[Music] whether you're newly retired or you've been retired for a while it's important to understand how your benefit is reported for tax purposes topics we'll look at today include what the 1099-r form is and how many you may receive the contents of the form what safe harbor is and how it may apply to you and some additional information you may find helpful in january of each year the asrs provides a 1099-r form to each person who received either a benefit payment or a partial lump sum in the prior year the 1099-r form is a federal form used to report benefit payments to the irs your benefit payments are subject to federal and state taxes the reports your gross and taxable income received from the asrs if you receive multiple types of benefits from the asrs you'll receive multiple 1099-rs for each type of benefit depending on your situation examples include before and after the age of 59 and a half for any partial lump sums survivor benefits refunds or a domestic relations order now let's go through the 1099r form and i'll explain what each box represents any boxes not mentioned specifically should be blank box one gross distribution this is the full amount of your benefit that you received during the tax year it includes the total of your annuity amount any adjustments and your exclusion amount which is any amount not subject to taxation it does not include the asrs premium benefit we'll look at where you can find your annual health insurance premiums toward the end of this video box 2a taxable amount this is the amount of your benefit that is taxable it includes all the amounts in box one except for the amount in box five which is a portion of your employee contributions already taxed box 2b taxable amount not determined if this box is marked with an x the asrs did not determine the taxable amount this applies to a small percentage of asrs retirees if you received a total distribution of your asrs account the total distribution box will be checked box 4 federal income tax withheld this is the amount of federal taxes withheld from your benefits during the year if you submitted a w4p for the asrs to withhold federal taxes for you the total of all monthly amounts are shown here if you did not complete a w4p form the default withholding is married with three exemptions if you've received a partial lump sum paid to you the mandatory withholding was twenty percent of the taxable amount box five employee contributions this is the total of the tax exclusion dollars for the calendar year if you add the amount in box five to the amount in box two the total should be the same as the amount in box one gross distribution the asrs does not use this box for insurance premiums box 7 distribution code this code tells the internal revenue service what type of taxable distribution this is and whether you are over or under the age of 59 and a half the most common codes you will see are two early distribution exemptions apply or seven normal distribution box 9a percentage of total distribution if a total distribution was made to more than one person such as a domestic relations order settlement or a beneficiary settlement the percentage you received is shown in 9a box 12 state tax withheld this is the amount of arizona state tax withheld from your benefits during the calendar year if you reside in arizona and submitted an a4p for the asrs to withhold state taxes the total of all the monthly amounts are shown here the asrs does not withhold from another state's income tax if you received a partial lump sum paid to you the mandatory arizona state withholding was five percent of the full amount box 13 state payers state number is the arizona state retirement system's identification number i had mentioned exclusions while going through the 1099-r boxes the asrs uses the irs safe harbor method to determine how much of your monthly benefit is not taxable contributions made before july 1st of 1986 and after tax service purchase payments have already been taxed therefore they are excluded from being taxed again the asrs will track your safe harbor monies and show it as an exclusion on your payment history for you here are a few more things you might want to know you can easily change your tax withholdings both federal and state through your my asrs secure account if you want to know the total amount withheld for your health insurance premiums log into your secure account to view your december direct deposit payment history on the right hand side under each year to date you'll find the total amount of your premiums on the line marked health insurance premium on the left-hand side of the statement under year-to-date you'll find the total amount of your premium benefit on the line marked health insurance supplement the asrs paid this total amount toward your health insurance during the tax year if you need to know what you paid for health insurance for tax reasons subtract a health insurance supplement from your total premiums if you received a retroactive health insurance supplement in late december be sure to subtract that amount also from your premiums you can opt to receive your 1099-r electronically through your secure account this is the fastest way to receive your form otherwise you'll be mailed your 1099r the last week in january to make sure you get it keep your mailing address updated you can change your address online through your secure account the asrs is not qualified to give tax advice you should address your personal tax questions with your tax advisor hope you now have a better understanding of your annual federal 1099-r tax form thanks for watching and have a great day