Need help - issue with $0 gross distribution amt on 1099-R

[Carpediem]

I am having an issue submitting my tax return using HR Block software and am hoping someone can help me.

Background:

I received two 1099-Rs from Vanguard a few weeks ago for a couple of distributions during 2018. I noticed one of the distributions was incorrectly coded as a "1" (early distro) when it should have been a "7". The other 1099-R was coded correctly with a "7".

I talked to Vanguard and they corrected it by:

1. Changing the gross distribution amount (box 1) to $0 on the incorrect 1099-R.

2. They added the gross distribution amount from the first 1099-R to the 2nd 1099-R.

So now, I have two 1099-Rs - one with a $0 gross distribution amount - and HR Block software keeps telling me this is an error and will not let me submit my return.

I'm not sure what to do. Please help if possible.

[RockyMtn]

I would just file the one that has the correct total distribution. Don't worry about the other one. If the feds look at it they will see it as 0 and won't go any further.

Technically it shows zero income so you don't need to report it.

[Carpediem]

Quote:

Originally Posted by RockyMtn I would just file the one that has the correct total distribution. Don't worry about the other one. If the feds look at it they will see it as 0 and won't go any further.

That's what I was hoping to do but wasn't sure if the IRS would flag me due to not reporting one of the 1099-Rs. Thank you.

[Philliefan33]

Quote:

Originally Posted by Carpediem That's what I was hoping to do but wasn't sure if the IRS would flag me due to not reporting one of the 1099-Rs. Thank you.

If they flag you, respond to the letter with a copy of the 1099-R showing 0 in Box 1. No tax consequence, easy peasy.

[CRLLS]

Isn't there a box somewhere on the new 1099-R that says "Corrected"? I seem to recall that. If so, there should be the similar place on the HR Block tax software. File the corrected one and file the 1st just in case.

[Carpediem]

Quote:

Originally Posted by CRLLS Isn't there a box somewhere on the new 1099-R that says "Corrected"? I seem to recall that. If so, there should be the similar place on the HR Block tax software. File the corrected one and file the 1st just in case.

Yes, there is a "Corrected" box I can check (and I did) but the software is still not allowing me to submit the return with a $0 gross distribution amount.

[pb4uski]

Quote:

Originally Posted by RockyMtn I would just file the one that has the correct total distribution. Don't worry about the other one. If the feds look at it they will see it as 0 and won't go any further. Technically it shows zero income so you don't need to report it.

Or try inputting $0.01... even $0.49.... it will round down to $0.

[Carpediem]

Quote:

Originally Posted by pb4uski Or try inputting $0.01... even $0.49.... it will round down to $0.

Good idea but unfortunately, it just rounded it to $0 and gave me the same error.

[CRLLS]

Have you tried calling their help line? I needed confirmation on filling out the 2210 form in TurboTax. Wait time was only a couple of minutes and the guy was very helpful. HR BLock should be similar I would think.

[Carpediem]

Quote:

Originally Posted by CRLLS Have you tried calling their help line? I needed confirmation on filling out the 2210 form in TurboTax. Wait time was only a couple of minutes and the guy was very helpful. HR BLock should be similar I would think.

After *finally* finding the correct number to call at HR Block for customer support, I called and waited on hold for around 15 minutes. In the end, the rep told me I'd have to print and mail my return. He said "you can't just enter something in box 1 to get around the error or you might get audited". I guess I'll be filing the old fashioned way.

Thanks all for your replies.

[donheff]

Quote:

Originally Posted by CRLLS Have you tried calling their help line? I needed confirmation on filling out the 2210 form in TurboTax. Wait time was only a couple of minutes and the guy was very helpful. HR BLock should be similar I would think.

I used the TT phone help once a few years ago and was impressed. I looked for it this year and couldn't find it - just links to post in user forums. Do you know the number or where on their web site to find it?

[njhowie]

Quote:

Originally Posted by Carpediem Good idea but unfortunately, it just rounded it to $0 and gave me the same error.

Then make it $1 - it's not going to change the end result and you won't get audited for that.

[EarlyBirdly]

Most likely the software is just doing it's job as designed and it will not allow an entry of zero as it deems it a duplicative effort with no tax implication so therefore , not necessary.

[Bir48die]

Quote:

Originally Posted by njhowie Then make it $1 - it's not going to change the end result and you won't get audited for that.

This is what we do while doing volunteer taxes. You'll always get booted if putting zero

[CRLLS]

Quote:

Originally Posted by donheff I used the TT phone help once a few years ago and was impressed. I looked for it this year and couldn't find it - just links to post in user forums. Do you know the number or where on their web site to find it?

Don, They really don't make it easy to get the phone number. They make you do some searches beforehand.

In the upper RH corner of TT in the black banner click on "Help Center". then At the very bottom of the next page in the fine print, click on "Contact us". That will take you to a page where you fill in a question under "What do you need help with?" I typed in "help center". That takes you to a page where you fill in name etc and press the button marked "Get the Phone Number"

In my case he needed to take control of my screen ( I gave him access through TT) to see how I had filled out the form. I was already on that page. Just be sure that you close the pop down window from the 1st "Help Center" button. Otherwise he couldn't work my screen.

Good luck.

[pb4uski]

Quote:

Originally Posted by Carpediem Good idea but unfortunately, it just rounded it to $0 and gave me the same error.

Well then put in $1.... and it will likely round out in the calculation of the tax.

[Carpediem]

Based on the 'use $1' suggestions, I decided to take that approach and I was able to submit my return. Since we sold a rental property in 2018, I was anxious to get this return done and the tax due paid. I may hang onto my last rental forever!