When do I file Form 1099-R for a withdrawal received in 2024?

Thanks for responding! I just checked the 1099-R form and Box 7 has the code "7" in it. Does that help explain what's going on? The form is definitely dated 2024. I'm not sure if it matters, but this was from an old 401k from a previous employer that I rolled over to an IRA. I don't think it was an RMD since I'm only 42.

Code 7 typically indicates a normal distribution from an IRA, and yes, it wouldn't be an RMD at age 42. These distributions are generally reportable in the tax year shown on the form. What might be happening is a quirk in TurboTax's interview process. Sometimes the software asks questions about timing to determine if a distribution might actually belong to a different tax year, but in your case, it sounds like it's giving you incorrect guidance. When you're working in TurboTax, make sure you're in the 2024 tax year software, not 2023. Also, try deleting the entry and re-entering it from scratch, as sometimes interview paths can get confused. If it still tells you not to report it, I'd recommend contacting TurboTax support directly as this sounds like a potential software issue.

How does this work exactly? I'm dealing with multiple 1099-Rs this year and I'm confused about which ones are taxable and which aren't. Does it actually give you filing advice or just general information?

I'm a bit skeptical about these tax tools - did it actually explain the specific rules about when to file the 1099-R? And how much does it cost? I've been burned before by "free" tax tools that end up charging hidden fees.

It works by analyzing your tax documents when you upload them. It identified all the key information from my 1099-R including the distribution code and explained exactly what that meant for my tax situation. It told me I needed to report my rollover on my tax return for the year on the form, even though the distribution itself wasn't taxable. The system is pretty comprehensive - it doesn't just give general information but specifically interprets your actual documents and explains the implications for your specific situation. It helped me understand which of my distributions were taxable and which weren't based on the codes in Box 7.

Wait, I don't understand... how does this actually work? The IRS phone lines are always busy - how can some service magically get you through faster? Are they just calling for you or something?

This sounds like a scam. Why would anyone pay a third party just to talk to the IRS? And how would they have any special access that regular citizens don't have? I'm extremely doubtful this is legitimate.

The service actually uses an automated system to navigate the IRS phone tree and wait on hold for you. Once they get a human IRS agent on the line, they call you and connect you directly to that agent. They don't talk to the IRS for you - you still handle the entire conversation yourself with the actual IRS representative. They don't have any special access to the IRS beyond what ordinary citizens have. What they're doing is basically handling the frustrating waiting process for you. I was skeptical too initially, but when I got an actual IRS agent on the phone who answered all my specific questions about my divorce-related 1099-Rs, I was convinced it was legit.

Thanks for this explanation! I didn't roll it over, I cashed it out completely (I know, probably not the smartest financial move, but I needed the money for some home repairs). So it sounds like I should definitely be reporting this on my 2024 taxes regardless of what TurboTax is saying? I'm wondering if I somehow answered one of their questions wrong during the interview process.

Yes, you absolutely need to report it on your 2024 taxes (filed in 2025). Since you cashed it out completely and didn't roll it over, it's a taxable distribution in the year it was distributed. I suspect you might have accidentally indicated it was a rollover when answering TurboTax's questions, or there might be some other confusion in how you're navigating the software. I'd recommend starting over with entering that 1099-R and carefully reading each question. If TurboTax still gives you the same guidance, you should contact their support because that would definitely be incorrect advice for your situation.

This is a really good point! I've made this exact mistake before. The tax software naming conventions can be super confusing because they're labeled with the tax year, not the year you're using them in.