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Level 2
Jan 25, 2025 3:40 PM UTC
Question

1099-R with Small Distribution

Schwab issued me a 1099_R for 2024 with both the gross distribution and taxable amount equal to $0.02.  Box 2b is checked as taxable amount not determined. Distribution code is 7 and IRA box is checked. This distribution was due to closing the IRA.

 

After error checking, TurboTax is telling me the gross distribution amount must be greater than $0.50.

 

Should I just omit this 1099_R from my tax return? The $0.02 income amount makes no difference to my tax due amount.

 

Thanks.

    3 replies

    DoninGA
    Level 15
    Level 15
    Jan 25, 2025 3:42 PM UTC

    Yes, just omit the Form 1099-R since it shows income of less than $0.50

    Be_kindAuthor
    Level 2
    Jan 25, 2025 5:51 PM UTC

    Thanks. I will delete the 1099-R from my file.

    Level 13
    Jan 25, 2025 3:42 PM UTC

    You can omit this since tax returns are rounded to the dollar.