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How can I file form 4852 when I cannot get a corrected 1099-R?

cactusman92

As part of an IRA rollover processs (rolling into 401k) I initiated in end of 2024/early 2025, I’d earned a small amount in interest that got disbursed to me as checks (two separate disbursements) that I ended up depositing in my checking account, which I believe should end up counting as an early withdrawal. However, on my 1099-R that I received, it was coded as a a rollover to a qualified retirement plan (G) because the disbursements were part of the process I was going to roll over into my 401k (even though the small interest amounts ended up getting sent to me). I contacted Fidelity about this and they are unable to provide a corrected 1099-R because at the time, it was part of a rollover to a qualified plan.

From what I researched and understood about the process, because I cannot get a corrected 1099-R, I now need to file form 4852 as a substitute for the corrected 1099-R. Am I able to do this with the FreeTaxUSA software and if so, how? Should I be contacting the IRS first before doing so?

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Comments

Taylor

Hello cactusman92,

Does the amount in Box 1 include the interest earnings in the total distribution? And if so, are the interest earnings also reported in the Taxable Amount Box 2a?

Since the 1099-R shows code G (rollover to qualified plan) but you kept the interest portions, in most cases you need to report the additional taxable income. You can enter the 1099-R as received in the Income tab under Retirement Income (1099-R). Then, to report the interest amounts as taxable, you'll need to make an adjustment to show that portion wasn't actually rolled over.

The IRS receives a copy of your 1099-R and will match it to your return. Generally, if you report more taxable income than the 1099-R indicates(Box 2a), the IRS typically won't object since you're paying tax on amounts that were coded as non-taxable.

I'd recommend contacting Fidelity again to confirm the exact amount of interest that should be taxable.

If you would like a corrected 1099-R to report this and Fidelity is not willing to provide it, then the IRS does suggest contacting them first and they will give you instructions on filling out the 4852 form to include with your 1040. I will include a link below with their instructions for this situation:

https://www.irs.gov/taxtopics/tc154

cactusman92

https://community.freetaxusa.com/discussion/comment/6984#Comment_6984

Hi Taylor, thank you for your response.

In my tax form, Box 1 contains the total amount of interest I’d earned that got distributed to me as checks that I deposited in my checking account and Box 2a, does not report that amount as taxable (shows as 0).

I’d contacted the IRS and was recommended to file form 4852 as a substitute 1099–R. However, I was not able to fully understand how to file this form 4852 within FreeTaxUSA when filling out my tax return. Within the software, I marked Box 2a as the correct taxable amount, changed the distribution code from G to 1, marked the 1099-R as non-standard (which is described as “handwritten, altered, or hand-typed”), and that it was not a corrected 1099-R (as my 1099-R does not show as CORRECTED in the form), but in the preview of my tax return, I do not see form 4852 attached. Am I supposed to generate that form in some other manner?

GeorgeM

Hello cactusman92:

To follow-up on the post from Taylor, our software does not support Form 4852 in connection with creating a substitute 1099-R. We do support Form 4852 in connection with preparing a substitute W-2, but unfortunately our software in the Retirement Income section does not include a question about whether the taxpayer is reporting a corrected 1099-R.

Therefore, you will need to prepare Form 4852 either by hand or use a different tax software. If you decide to prepare Form 4852 by hand, you can continue to use our software, but you will need to paper mail your tax return because you won’t be able to attach your Form 4852 to your tax return.