IRS Form 1099-R

If you received a retirement benefit from VRS last year, you will receive a form 1099-R in late January. Use this to complete your federal and state income tax returns. Look for your 1099-R in the mail and in your myVRS account by the end of January.

Work-related disability retirees will not receive a 1099-R because VRS does not deduct federal or state taxes from this benefit. You will receive an annual income verification letter by the end of January for record filing purposes.

What does your 1099-R show?

• The total amount of your monthly gross benefit.
• The total amount of federal and state tax withheld during the year.
• The amount of your benefit that is not taxable.
• The amount of health insurance premiums you paid last year if VRS deducts these premiums from your benefit. If you are eligible for a health insurance credit, the amount shown on your 1099 is the difference between the total health insurance premium amount and health credit amount.

Note If you receive a health insurance credit, the amount is not on your 1099-R form. The health insurance credit is a non-taxable benefit and is not included with the taxable income on your 1099-R form.

What if you read your 1099-R and decide to change your tax withholding?

Visit your myVRS account. The income tax calculation tool in myVRS allows you to see the impact of any changes to your tax withholding amount and to submit your changes online. Your account will be updated automatically.

You also can change your withholding by filing a new Request for Income Tax Withholding (VRS-15) or by calling 1-888-827-3847.

Live outside of Virginia?

Contact your state’s taxation agency for more information about completing your state income tax returns. If your permanent residence is outside of Virginia, you are not subject to Virginia income tax withholding on your VRS benefit.