Need help with 1099-R - $0.05

[lefty]

Back story:
Rolled over my old 401k (Fidelity) to Vanguard (100%) in 2016.
Sometime last year, I get a check from Fidelity for $0.05. I called and they say its just excess from the roll over, just cash it. No worries.

Now:
I have a 1099-R from Fidelity for $0.05. I thought I wouldn't get one if its less than $10.

Questions:
Do I actually have to file taxes for this $0.05 1099-R ?
Tried to use Turbo Tax free version, I couldn't include the 1099-R unless I got the Deluxe version for $40.

Any simple solution here?





 

[Lucky Recardito]

If you try to plug in 5 cents, it'll just round down to 0 on your tax forms anyway. I wouldn't worry about it.

[lefty]

Meaning, just forget about it?

[MDM]

Meaning, just forget about it?

Yes, just the same as you would if you found a nickel on the ground.

[seattlecyclone]

If you (like most people) round everything to the nearest dollar on your tax return, this should not affect your taxes at all unless you got another taxable 1099-R with a remainder between 45 and 49 cents, making the extra nickel cause the rounded value you would report to go up by a dollar.

[lefty]

I see. I guess at this point it doesn't matter if I am below the age of 59 1/2. I was thinking along the lines of the IRS auditing due to a document I did not submit.

[Sibley]

The IRS is understaffed, overwhelmed, and the audits that get done are the really big returns. You're fine.

[seattlecyclone]

I see. I guess at this point it doesn't matter if I am below the age of 59 1/2. I was thinking along the lines of the IRS auditing due to a document I did not submit.

I mean...if you're really worried about it you could always file a Form 5329 calculating your early withdrawal tax based on an early withdrawal of $0, but I don't know of any reason why the IRS would penalize you for not doing that.