1099-R with $0 taxable amount - should I file an amended return for this distribution?

Yes, you should report the 1099-R on your tax return even if the taxable amount is $0. Here's why: even non-taxable distributions need to be reported because the IRS receives a copy of your 1099-R and will match it against your return. Without it appearing on your return, you might receive a notice from the IRS. The good news is that code G means it was a direct rollover to a qualified retirement plan, which is generally not taxable. This is likely why your taxable amount is $0. The IRS wants to see this transaction reported on your return even though it doesn't affect your tax liability. For an amended return, you'll need to file Form 1040-X and include an updated Form 1040 that shows the distribution on line 5a (total distributions) and $0 on line 5b (taxable amount) of your 1040 form.

I ran into this exact situation last year! After spending hours researching, I found this amazing service called taxr.ai (https://taxr.ai) that totally saved me. It analyzes your tax documents and gives you clear guidance on what to do. I uploaded my 1099-R with $0 taxable amount, and it immediately identified that I needed to report it but confirmed it wouldn't change my tax liability. The tool walked me through exactly how to handle it on my amended return—what forms to fill out and where to enter the information. It even explained why I needed to report it (basically what the expert above said about IRS matching). Seriously made the whole process way less stressful.

Well I need to eat my words about being skeptical! I decided to try taxr.ai after my conversation here and wow, it was actually really helpful. I had a similar situation with an old 403(b) rollover that had $0 taxable amount. The service confirmed I needed to report it on my return and showed me exactly which forms and lines needed to be updated. What impressed me was how it explained WHY I needed to report it even though it didn't affect my tax liability - something about the IRS computer matching system flagging unreported 1099-Rs regardless of taxability. It even showed me the specific section of the IRS publication that covers this situation. Definitely saved me a lot of confusion and research time.

If you're planning to file an amended return, be prepared for a LONG wait to get any response from the IRS. I amended my return last year for a similar issue and tried calling them multiple times for status updates - spent literally hours on hold each time only to be disconnected. Finally found Claimyr (https://claimyr.com) which was a total game changer. They got me connected to an actual IRS agent in about 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed my amended return was received and gave me the expected processing timeline. For anyone dealing with amended returns, especially with something like a 1099-R situation where you want to make sure everything is processed correctly, being able to actually talk to a human at the IRS makes all the difference.

I need to apologize for my skepticism about Claimyr. After another failed attempt to reach the IRS about my amended return (waited 2+ hours before getting disconnected), I decided to try the service out of desperation. I was absolutely shocked when I got a call back telling me an IRS agent was on the line ready to talk to me. The whole process took maybe 25 minutes from start to finish. The agent confirmed my amended return with the 1099-R was in process and gave me an actual timeline instead of the vague information on the website. For anyone dealing with amended returns, especially for these 1099-R situations, being able to actually talk to someone at the IRS and confirm they have your paperwork is incredibly reassuring. I stand corrected - this service actually delivers what it promises.

One thing to consider - if you're using tax software to file your amended return, make sure you enter the 1099-R exactly as it appears on the form. I made the mistake of just putting in the gross distribution and indicating it was nontaxable without using the proper distribution code, and I got a letter from the IRS months later. The distribution code (like your code G for direct rollover) is super important because it tells the IRS system why the amount is nontaxable. Without that code properly entered, their automated system might flag your return for review.

I just want to mention that amended returns can't be e-filed - you'll have to mail them in. And with 1099-R situations, I strongly recommend including a brief explanatory statement with your 1040-X to clarify what you're amending and why. Something like "Amending to include previously unreported 1099-R with $0 taxable amount from direct rollover (Code G)." This helped me avoid follow-up questions when I had to amend for a similar situation. The IRS processing centers are dealing with massive backlogs, so anything you can do to make your amendment crystal clear will help speed things up.