Do I need to amend my 2017 tax return?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
jackmkt
Posts: 2
Joined: Sun Jan 27, 2013 10:43 am

Do I need to amend my 2017 tax return?

Post by jackmkt » Sat Jan 12, 2019 8:27 am

Long time lurker, appreciate all the insights and learnings from everyone on this forum over the past few years! I opened a Roth IRA in 2016 (with the Fidelity credit card I know many on this forum use), and in 2017 took a distribution of $600 (all contributions, no earnings). I received a 1099-R from Fidelity. I believe I forgot to include this on my 2017 tax return, as there is nothing showing on line 15a or b of my 1040EZ. Do I need to file an amended return for this? Appreciate any insights you have!

User avatar
samsoes
Posts: 933
Joined: Tue Mar 05, 2013 9:12 am
Location: Northeast Rat Race

Re: Do I need to amend my 2017 tax return?

Post by samsoes » Sat Jan 12, 2019 8:45 am

Most definitely amend.

Although the additional tax due should be $0, the IRS reconciles 1099 activity reported to them by financial institutions on your behalf against what you've reported. An an under-reporting of income on your part will be flagged. You may get a bill (including penalty amounts).

It's up to you to go through the necessary gymnastics on the 1040 forms and schedules to show that there's no additional tax liability.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

Topic Author
jackmkt
Posts: 2
Joined: Sun Jan 27, 2013 10:43 am

Re: Do I need to amend my 2017 tax return?

Post by jackmkt » Sat Jan 12, 2019 8:48 am

Appreciate it, thank you!

retiredjg
Posts: 34745
Joined: Thu Jan 10, 2008 12:56 pm

Re: Do I need to amend my 2017 tax return?

Post by retiredjg » Sat Jan 12, 2019 8:58 am

A distribution of only contributions from a Roth IRA is not taxable income. But, according to the instructions, it was supposed to be reported on line 15a (which is not on Form 1040EZ but is on Form 1040). So I think an amendment is needed.

It may also need to be reported in Part III of Form 8606 - the form says you do not need to consider "return of certain contributions" as a distribution but it says to read the instructions to figure out if that applies to you.

Even if you do not need to report it on Form 8606, you need to keep a ledger of how money has gotten into and been taken out of your Roth IRA. You will need that information later if you take money out before age 59.5.

Post Reply