How do you make a 1099misc a roll over?

Forum|Forum|7 years ago
June 5, 2019
5 replies
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Best answer by TomYoung

ASSUMING that you deposited the money into your IRA you should have told the financial institution that this was a "restorative payment." That way the money would not be treated as a new contribution to the IRA.

In this situation you do not need to report the amounts reported on the 1099-MISC as income anywhere on your income tax return. You don't have a "rollover" situation, you have a "restorative payment" and there's no way to somehow convey that concept via the income tax return.

There are some somewhat hokey ways of actually reporting the 1099-MISC on your income tax return without reporting the amount as income but whether these methods actually prevent the IRS from asking about the "missing" 1099-MISC are more or less unknown, to me at least. IF the IRS ever does ask about the missing 1099-MISC THEN you respond with a clear, well written letter explaining the situation, including with the letter any documentation that supports the fact that this was a restorative payment, not income. That should settle the matter.

Tom Young

Critter

Level 15

What ? Income reported on a 1099-misc is not eligible for a "roll over". Please add some details ... what are you trying to do?

W

warrendillmanAuthor

Level 2

Lost money from an IRA because of a agent malpractice. Money was returned as 1099misc. It should go back into the IRA. How to?

Hal_Al

Level 15

Was the $ actually deposited back into the IRA? If so. how? That is, did the payer put it into the IRA or did you get a check and then deposit it yourself. If so, when did you receive the check and when did you deposit it?

T

TomYoung

Answer

Alumni - Champ

ASSUMING that you deposited the money into your IRA you should have told the financial institution that this was a "restorative payment." That way the money would not be treated as a new contribution to the IRA.

In this situation you do not need to report the amounts reported on the 1099-MISC as income anywhere on your income tax return. You don't have a "rollover" situation, you have a "restorative payment" and there's no way to somehow convey that concept via the income tax return.

There are some somewhat hokey ways of actually reporting the 1099-MISC on your income tax return without reporting the amount as income but whether these methods actually prevent the IRS from asking about the "missing" 1099-MISC are more or less unknown, to me at least. IF the IRS ever does ask about the missing 1099-MISC THEN you respond with a clear, well written letter explaining the situation, including with the letter any documentation that supports the fact that this was a restorative payment, not income. That should settle the matter.

Tom Young

macuser_22

Alumni - Champ

Is the 1099-MISC even made out to you, or is it made out to your IRA care of you? Often checks or forms like that are made out like "Joe Blow, Rollover IRA" or some variation of that.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**