All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Reply
Valued Pioneer
Posts: 3
Registered: ‎02-13-2018

Received a 1099R of 14 cents, rounded to $0. Program won't accept that for E-filing. Now what?

When a transferred two IRAs to another custodian in 2016, the original custodian (Fidelity) somehow failed to transfer a few cents from both. Then in 2017, they deposited those few cents in my checking account, and recently sent me two 1099Rs for that, one for 9 cents and the other for 14 cents. (I'm over 65, so no penalty for such a withdrawal.)

 

The problem is that when I enter those 1099Rs into the 2017 deluxe program, it rounds their gross amount down to zero, and then when I try to Efile, its error-checker will not accept either a zero or a blank in that box.

 

Can I instead round them up to one dollar each, adding slightly to my amount due, or is there a better solution?

 

Thanks much for any ideas.

Esteemed Pioneer
Posts: 56
Registered: ‎01-12-2018

Re: Received a 1099R of 14 cents, rounded to $0. Program won't accept that for E-filing. Now what?

I would just remove them from my return.

Highlighted
Valued Pioneer
Posts: 3
Registered: ‎02-13-2018

Re: Received a 1099R of 14 cents, rounded to $0. Program won't accept that for E-filing. Now what?

[ Edited ]

Can I do that? Since the government also got a copy of both those 1099Rs, and matches them when checking returns, I was expecting to have to submit them regardless of amount.

 

Note: The program is happy if I instead round the pennies entries up to one dollar each, and it only adds one dollar total to my tax bill, so I was thinking of just "erring" in that direction.

Esteemed Pioneer
Posts: 56
Registered: ‎01-12-2018

Re: Received a 1099R of 14 cents, rounded to $0. Program won't accept that for E-filing. Now what?

For the most part IRS always drops the cents.  So they will consider it zeros.

Valued Pioneer
Posts: 3
Registered: ‎02-13-2018

Re: Received a 1099R of 14 cents, rounded to $0. Program won't accept that for E-filing. Now what?

I expected that. The problem is that the HRBlock software wouldn't let me Efile that way.

 

In the end, I rounded up, and paid one dollar more in taxes. It was cheerfully accepted by both the IRS and my state that way. If either wants to refund me the extra dollar later, that will be fine with me, but I still consider it a bug in the HRBlock program. If a company is allowed to send me a 1099R that averages to zero, then the program needs to allow such a 1099R to be sent to the IRS.