I only have a 1099-R, do I need to file taxes this year?

[carpetatoarca]

Have no w-2 and had no health insurance.

[DoninGA]

What is the taxable amount shown in box 2a?  What is the code in box 7?  Were federal income taxes withheld shown in box 4?

[carpetatoarca]

Slightly over $200 on box 2a, under $50 in box 4 and box 7 has code 7.

[DoninGA]

If that is your only income that would be reported on a tax return, then you are not required to file.  However, you should file to get a refund of the federal taxes withheld.

[carpetatoarca]

Thanks for your help!

[SharonC1 · Accepted solution]

You can use the graphs that start on page 9 of the IRS 1040 instructions (linked below) to determine if you need to file a tax return.  You need to be certain to pay attention to the header of the graphs.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[eco11]

Hello - I only received 1099-R, no other income. My understanding is that I do not need to file a return for 2023, is that correct?

One additional question: I no longer live in US (I am a Canadian citizen) but this 1099-R form is attached to an IRA that will remain open for the next 30 years until I can withdraw/close when I retire. My understanding is that I will continue to receive the 1099-R each year until I withdraw/close IRA account. Can I confirm that I do not need to file a return (1040 or even 1040NR) while this IRA remains open?

[JohnB5677]

No, You will not have to file a tax return, because, I don't think you will be getting a 1099-R each year.

• You will get a 1099-R if you withdraw from or rollover an account.
• If the account is maintained in the US, but there is no distribution activity, you will not get a 1099-R.
• If you are taking monthly "essentially equal payments" each month, you will get a 1099-R
• U.S. tax law provides that an individual does not pay U.S. taxes on amounts in an IRA until distributed.

@eco11 

Please contact us again with any additional questions.

[eco11]

Ok great - thank you!

So just to clarify, I received a Form 1099-R for 2023, but it does state "$0.00" for taxable income but gives an amount for "gross distribution". As I did not withdraw any amount or take monthly payment, my understanding is that I do not need to file a return for 2023. Is this correct?

Given your last point: "U.S. tax law provides that an individual does not pay U.S. taxes on amounts in an IRA until distributed."  - My understanding is that I will not pay U.S. taxes on this IRA account until it is distributed. Is this also correct?

Thank you so much for your help.

[JohnB5677]

I'm not sure why you received a 1099-R for 2023. 

You may have done a rollover or changed investment banks.

It may not be taxable, but I suggest you report it on your taxes.

• The gross distribution is posted to Box 1
• Box 2a (Taxable Income) may be blank but may not be zero.
• Are either of the boxes in 2b checked?
• What is the Box 7 distribution code.
• All of these factors may affect the taxability in 2023.

You are correct that, if you leave your money in the Retirement Account, it will not be taxed until it is distributed.

@eco11

Edited 03/25/2024 [11:08 AM PST]

[VolvoGirl]

Why did you get the 1099R?  Did you inherited this IRA account?  What code is in box 7?  

[eco11]

Appreciate the help - I've added my info below if that adds any clarity for the 2023 return.

• The gross distribution is posted to Box 1
  • total in Box 1: $1657.33
• Box 2a (Taxable Income) may be blank, but may not be zero. 
  • Box 2a: $0.00
• Are either of the boxes in 2b checked?
  • Total distribution box is checked (but not "taxable amount not determined")
• What is the Box 7 distribution code.
  •  What do all the codes in Box 7 of the 1099-R mean?
  • G
• All of these factors may affect the taxability in 2023

[eco11]

No did not inherit, opened a rollover IRA account in 2022 after leaving my job in the U.S.

The code in Box 7 is "G"

[JulieS]

No, you don't need to file a US tax return just to report this 1099-R. 

The code G in box 7 means that the retirement account was directly rolled over to another retirement account, so it's not taxable.

You won't get another 1099-R until you actually distribute the money in the account, or move it to another retirement account. 

You will get a Form 5498 every year, but you don't report that on your tax return. Form 5498 just lets you know the year end value of the account and whether you are required to take a distribution. Just keep them with your tax records. 

[eco11]

Thank you so much! Really appreciate you clarifying this.