why would 1099 show as wages on 1040?

Could this be a disability pension before minimum retirement age for this purpose.

Some disability retirement benefits qualify as earned income to claim the Earned Income Tax Credit or EITC. Also, you may claim a relative of any age as a qualifying child if the relative is totally and permanently disabled and fits all other EITC requirements.

http://www.irs.gov/Individuals/Disability-and-Earn...

Publication 596 (2011), Earned Income Credit (EIC)

http://www.irs.gov/publications/p596/index.html

Disability Benefits

You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age.

Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b.

Hope that you find the above enclosed information useful. 10/16/2012

Non-employee income can only be listed as wages if a form SS-8 has been filed, the IRS approves it and a form 8919 is attached. The form 8919 allows the "employee" to pay the employee share of fica/mc and not the employer's.

Edit. Oh, you meant a disability pension shown on a 1099-R? Allowed. See discussion in IRS publication 596, for EIC.

Disability Benefits

If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. <<-----

Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b.

"I mean that annuity/pension on the 1099r is showing up as wages on line 7 of the 1040.'

You entered it in the Wrong Section, doh!

Are you disabled?

If you have not reached the mandatory retirement age as set by your employer, disability pensions are reported as wages on Line 7 of your 1040.

Somebody made a mistake. Income shown on a 1099R indicates that someone is receiving either a IRA distribution and/or a pension.

Either way, this income should be listed on either Line 15A or line 16A of the 1040 form.

they wouldn't

there is another line for annuities and pensions

if someone prepared your return this way it incorrect

(sounds like the same person prepared your as one of my clients for his 2010 return, nothing was placed where it belonged)