@ThomasM125 wrote:
@macuser_22 You are correct, please see my edited response. I was assuming the earnings were not reported on a form 1099-R. It is commonplace to report income not reported to you as Other Income, especially when the amounts are minimal as is the case here.
Not if it is a distribution from an IRA. By law any IRA distribution can only be reported on a 1099-R. The IRS gets a copy of the 1099-R from the financial institution and expect to see it on the IRA owners tax return. Any IRA distribution of $1 of more must be reported on the 1040 line 4 with a 1099-R. There is no other way to report it.
See 1099-R instructions and IRS PUB 590B for reporting reqiuirments.
https://www.irs.gov/instructions/i1099r
https://www.irs.gov/publications/p590b
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
