Hal_Al
Level 15

Education

When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax (TT)will enter nothing about the 1099-Q on the actual tax.  So, entering it in TT can not help you stave off an IRS inquiry.  

 

We have noticed, here in this forum, that the number of 1099-Q notices, from the IRS has dropped off significantly in recent years. I can't recall the last time there was a post about an IRS 1099-Q inquiry.  I personally got one, back in 2015, and it was a simple thing to explain it away.