IRS Form 1099-R

Form 1099-R afforded by the IRS is established to report the profits from professional occupation (excluding salaries) and miscellaneous income. The paper recognizes distributions from retirement programs, individual retirement accounts (IRAs), pensions, annual gains, insurance agreements, and other sources not related to wages.

To get acquainted with the 1099-R form, you can generate a PDF file via our form constructor by clicking the link on this page. It is vital to know that only official IRS red templates are scannable. The forms are traditionally provided on the IRS web page or at a district tax office.

Ensure to download and print out the official copies of the respected form. It will help avoid penalties and unfavorable consequences. The preparer can claim scannable documents on the IRS online portal in the “Order Forms and Pubs” section.

Who Should File the 1099-R Report?

The 1099-R template is assembled in three copies that are distributed as follows:

• The red-printed copy is filed with the IRS.
• Also, there are copies for the payer and the payee.

The responsibility to complete the copies belongs to the employer who renders the requested data on the employee’s behalf. The payer should file a 1099-R record for each individual who is assigned a distribution of at least 10 USD (qualified as the afore-mentioned income sources). If the preparer is reporting distributions made to trusts, beneficiaries, or estates, they need to include the recipient’s TIN and name.

What Is the Due Date to File 1099-R Report?

All 1099-R reports should be delivered to the recipients by January 31 of the year, consequent to the reporting period. The IRS is expecting to get the completed reports by February 28. If the payer is reporting the prior tax period return and 1099-R records electronically, the due date is March 31.

What If I Make an Error?

In rare cases, the payer introduces an error that must be corrected as soon as possible. To provide amended documentation, the preparer should refile the referenced form stamped with the “Corrected” checkbox at the top of each copy.

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How to Fill Out IRS Form 1099-R

We have already mentioned in the previous parts of our review that only official IRS forms are scannable. Therefore, use the PDF files generated via our software only for informative goals and personal records.

Follow the pattern below to complete the 1099-R report.

1. Identify the Preparer

In this section, the preparer should specify the employer’s identification details, including these data:

• Legal name
• Domiciliary address — street, city, state, and ZIP

If the payer is residing abroad, please, define the foreign country, region (or county), and a foreign postal code.

• Contact phone number

2. Put the Payer’s and the Recipient’s TINs

Insert the payer’s and the recipient’s tax ID numbers separately using the corresponding boxes.

3. Identify the Payee

Complete the demanded info about the payee, including the following aspects:

• Payee’s legal name
• Mailing address — street and unit (apartment) number, city, state, and ZIP code. If the domiciliary location is out of the US, specify the foreign country, province (region), and foreign mail code.

4. Enter the Amounts for Units 1 Through 19

Once you have identified the payer and the payee, proceed to the centerpiece of the 1099-R statement and provide the report regarding these aspects:

• Gross distribution of funds in slot 1

• Amounts that are subject to taxes are added to slot 2a if the funds are non-taxable or assigned fully; checkbox the correct variant in slot 2b.

• In slot 3, the preparer needs to enter any taxable capital income gained from trading bonds, estate, or stocks (if included in gross distribution amount). Define the correct sum in USD.

• In unit 4, submit the amount of federal income tax that the payer withholds from the payee’s earnings.

• In slot 5, the preparer enters the amounts that the payee has invested into a licensed Roth IRA.

• In unit 6, specify the amounts from the payee’s unrealized gains in the employer’s securities program.

• In unit 7, you need to assign the distribution code. IRS provides an official Guide to Distribution Codes on pages 15 through 17 in their 2021 Instructions for Forms 1099-R and 5498. Utilize the table to qualify the contents of section 7 correctly.

• In slot 8, the payer enters any extra income amounts.

• Box 9 contains two subsections that are filled in as follows: specify the total distribution rate in slot 9a and use 9b to indicate the total payee contribution in USD.

• Unit 10 is filled out only if § 72(t) of the US Code does not apply. Enter the amounts assigned to IRR for the period of five recent years.

• In slot 11, specify the year when the payee made their first Roth investments.

• If qualifying for FATCA requirements regulated by § 6047(d) of the US Code, check the box in unit 12.

• Section 13 is referenced to date the amounts contributed for reportable death benefits and regulated by § 6050Y of the US Code.

• In Units 14-15 and 17-18, the preparer enters the amounts of state and local taxes withheld for the earnings introduced in this 1099-R report. Also, you are empowered to indicate the payer’s (state) number and the locality specifications.

• In boxes 16 and 19, you need to enter the state and local distribution separately.

5. Provide Account Specifications

In case the payer has several accounts for the payee, they are filing the respected report form, give account specifications in the left bottom box of the 1099-R form.

Once the required data are rendered to the form, you are empowered to file the red copy with the IRS, leaving one black copy for personal records and providing the third copy to the recipient.