Here's how you should likely handle reporting the distribution check:
Determine the Taxable Amount: Since the check was issued from an IRA, it is generally considered a distribution and should be reported as income on a substitute 1099-R.
Here's how you can report your IRA distributions in TurboTax and create a substitute 1099-R:
- Log in to TurboTax: Be sure you are logged for the link in step 2.
- Go to 1099-R.
- Enter Manually: On the "Let's import your tax info" screen, select "Change how I enter my form" and then choose "Type it in myself".
- Indicate Form Type: Indicate the type of form you were expecting to receive (e.g., 1099-R IRA, pension, etc.).
- Complete Form 1099-R: Enter the details as if you actually received the correct form. Include as much information about the payer as you can, such as name, address, and the amounts for 2024.
- Substitute 1099-R: Continue until you reach the question "Do any of these situations apply to you?" and check "I need to complete a substitute 1099-R".
- Provide Details: Enter the details of your distribution as accurately as possible. Use the information from the check and the letter you received from the Receiver.
For more information on reporting IRA distributions, you can refer to the IRS guidelines on IRA distributions and reporting IRA transactions.
