My stimulus check was direct-deposited into my IRA account (account on my 2019 return). I withdrew it, now I have a 1099-R. Do I now have to pay taxes on it?

[kaoliver65]

My bank told me at the time that it would be tax and penalty free and moved it to my checking account for me. Now they're saying it's taxable.

[ThomasM125]

A withdrawal from an IRA account is normally taxable, but you can make a contribution to an IRA and then withdraw it by the time you file your tax return and it will not be taxable, accept for any earnings during the time it was in the account.

Your IRA administrator should be able to give you a form 1099-R that will reflect the contribution and return of money to you. You will pay tax and a potential 10% penalty on the earnings if any, but that shouldn't amount to much.