I have a 1099-R for $0.11 and TurboTax online is not letting me enter less than $1.00. How can I get past this to be able to add my 1099-R with the correct amount?

[cjboger]

How can I enter a 1099-R that has a gross distribution less than $1.00?

[JamesG1 · Accepted solution]

The IRS wants $.11 rounded down to $.00.  Do not enter the IRS form 1099-R.

If the value of your IRS form 1099-R is $.11, retain a copy of the IRS form 1099-R should a tax authority have a question at a later time.

IRS Publication 17, page 14 states:

Computations 

The following information may be useful in making the return easier to complete. 

Rounding off dollars

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

[cjboger]

So when I fill out the 1099-R in TurboTax online I will put $0.00 in Box 1 (Gross distribution) and can leave $0.11 in Box 2a ( Taxable amount ).  This way TurboTax will let me complete the 1099-R form.  I hope that will cover my bases.  Thanks JamesG1, I appreciate the insight.  I have always just entered the actual amounts and haven't rounded.  I am probably just being over cautious to get it right since these forms were all produced and sent even when the amount was this small and reported.

[Vanessa A · Accepted solution]

No.  As James stated above, do NOT enter your 1099-R that has only $.11.  This will cause an error when you go to file.  No matter where you put the $.11, it will automatically round down to $0 and will be looked at as a form error.   A zero dollar form will have NO affect on your overall tax situation. 

You will need to delete this 1099-R and just keep it for your records. It should NOT be entered on your return. 

[VolvoGirl]

No.  Do not enter that 1099R at all.  Ignore it.  Or do any other boxes have bigger amounts in them like box 4 or 5?