1099-R and Tax Season
Looking ahead to tax season, we would like to share important information about PBGC benefits and taxes. If you’re currently receiving payments from PBGC, the below information will help you be prepared when it’s time to file your taxes.
To help participants prepare their taxes, each January we’ll send participants an IRS Form 1099-R stating the benefit amount we paid the previous year. The IRS has a tool, "Is My Pension or Annuity Payment Taxable?" that will help determine if your pension or annuity payment is taxable.
We expect that 1099-R forms for PBGC benefits paid in 2017 will be mailed by January 31, 2018, and will be available on MyPBA beginning February 1, 2018. MyPBA is PBGC’s secure online service that lets you perform certain common transactions with us. If you’re a participant in a PBGC trusteed plan and you haven't used MyPBA in a while, we encourage you to log in before you prepare your taxes to ensure your account is active.
If you received benefits from PBGC in 2017 and have not received your 1099-R by February 7, 2018, please call our Customer Contact Center for assistance, 800-400-7242. (TTY/ASCII: 800-877-8339 and ask to be connected to 800-400-7242.) Please have your Social Security number ready for the customer service representative.
State Income Taxes
While PBGC is required to withhold federal income tax, we do not withhold for state taxes. If your state taxes retirement income, you may owe tax on your PBGC benefit. To find out more contact your state tax office.
Health Coverage Tax Credit
We also want to remind you that you might be eligible for a Health Coverage Tax Credit (HCTC). HCTC is an IRS tax credit, extended until the end of 2019, for health care insurance premiums, which may apply to certain individuals ages 55 to 65 who receive benefits from PBGC. For assistance on how to claim your HCTC, visit the IRS page at Health Coverage Tax Credit. The IRS also has a toll-free number for assistance on HCTC at (844) 853-7210.
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