Steelpath Funds Remediation check with no 1099r. How do I report it?

[PattiF]

Here is a link to the SteelPath Funds Remediation website. You can request a reissue of the form that you need there.

[ltrss]

SteelPath is not issuing 1099s for anything under $600 dollars. I ended up putting it under other income from Schedule 1, Line 10. I do not remember the exact entry place in Turbo Tax. It was labeled other income.

[ColeenD3]

Another option is to create a substitute 1099-R, but if you do not have all the information, you will have to mail the return.

Substitute 1099-R

If your plan administrator doesn't give you Form 1099-R for 2020 (or the one you receive is wrong and your plan administrator refuses to correct it), do your best to obtain the form or correction before completing a substitute on Form 4852.

You'll be required to:

 - describe your communications with the plan administrator in your attempt to get the form, and

 - attest to the IRS that you were unable to obtain it.

Complete a Form 1099-R as if you actually received the correct form. Enter as much information about the payer as you can, including name, address, and the amounts for 2020. Then complete the information for the substitute form.

Type 4852 in the search box then select the Form 4852 form and click the Open Form button. Follow the directions at the top of the page for entering the 1099 R information. 

[JoeAG]

1099r is if it was part of an IRA portfolio, right?  What should we do if it was part of a more regular investment instrument (non-IRA/non-401K) with my retirement company?

[DaveF1006 · Accepted solution]

If you don't have an 1099R, you would report this as other income.

1.  Go to federal>income and expenses>all income>>show more 
2.  Less Common Income> Start
3.  Miscellaneous Income,>start
4.  Other reportable income>start
5.  Next screen asks Any Other Taxable Income>yes
6. The next screen will allow you to report the income with a brief explanation. In this case, you would describe it as Steelpath Funds Remediation check with no 1099r.

[sys_spud]

As of Feb 25, 2022 I have not received a 1099-R (or INT) for the Remediation check.

From the Steelpath Funds Remediation website (linked to in an answer below) is the following statement:

Will I receive a Form 1099 or Form 1042s to use when filing my taxes for 2021?

You will receive a Form 1099-INT for the distribution if you are a U.S. person and the interest portion of your distribution is $600 or more. You will receive a Form 1042S if (i) you are a Non-Resident Alien, (ii) we do not have a W-8 and W-9 to prove your tax status, or (iii) you are subject to FATCA reporting. The 1099-INT or 1042S will be produced and mailed under separate cover by Miller Kaplan Arase, LLP (MKA) and reported to the IRS for the tax year in which the payment is made.

[sys_spud]

Here is additional information for people receiving the remediation from an IRA, at the website:

https://www.steelpathfundsremediation.com/documents/Statement%20to%20Eligible%20Shareholders.pdf

B. Interest Component
Unless you held your investment in an IRA, 401(k) account, or other qualified retirement plan, the interest component of your payment constitutes taxable interest income to you.
You will only receive a Form 1099-INT if the payment made to you contains $600 or more of interest. You will not receive a 1099-INT if your investment was held in an IRA, 401(k) account, or a qualified retirement plan.

In my own case, I mistakenly cashed the reimbursement, which may make me liable for taxes. 

There is much more information at the above link, and your personal tax situation may be complicated.  

[DaveAA]

@DaveF1006 DaveF1006,

Thanks for that hint. I have a follow-up question.

The "other reportable income" option leaves me with some unanswered questions:

- The remediation check is made out to me and my spouse as community property. The other miscellaneous income form has a field for both me and my spouse. Do I split the amount between us or enter the full amount in my field?

- The check includes an amount for "capital component" and an amount for "interest component". There is no field in the "other miscellaneous income" page for this split. Do I enter the interest portion in a separate interest (without 1099) entry and enter the capital component as "other miscellaneous income?"

[ThomasM125]

You should split the amount equally since it is community property. You should enter the interest income in the interest income section of TurboTax, as the IRS requires it to be separately stated as it could affect other things on your tax return.

[samantha2020]

In response to your comment "In my own case, I mistakenly cashed the reimbursement, which may make me liable for taxes."

Receiving a check meets the principle of "constructive receipt." In other words, cashing the check isn't the inciting event, receiving taxable income is the inciting event. Whether you cashed it or not, if a portion of the payment (i.e. interest) is taxable, that occurred when the payment was readily available to you.