How to file taxes for Roth IRA contribution under $600?

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  • #93613 Reply

      Not sure how to properly ask this question.

      My son contributed about $300 total to his Roth in 2023. His employer did not send him a 1099 because he didn’t earn $600. How does he go about filing his taxes since he contributed to his Roth? He was a minor until June of 23.

      #93614 Reply

        You don’t need a 1099 to file, just file and cover his Roth contributions.

        #93615 Reply

          Even if you don’t receive a 1099, it’s taxable income.

          Line 1h is for “other earned income”, for example.

          Typically in your situation you’ll file taxes as though you got a properly documented 1099, using the same lines and forms.

          Take a peek at: Max 401k or start Roth IRA with pension?

          #93616 Reply

            I did this for our son. Just used TurboTax (because it’s what I always use for our taxes) and there is an option for reporting income you didn’t get a W2 or 1099 for.

            #93617 Reply

              My young teen contributes to his Roth with earnings from yard work around town. It’s not necessary to have W2/1099 income to contribute, but you have to keep detailed records.

              I’m wondering if it would suffice in this case? You could also just file the income without the 1099 to have a record that way.

              I’ll be interested in reading others’ answers.

              #93618 Reply

                Save receipts or pay stubs. For Uber/Lyft they changed the threshold different years when they would issue the 1099-K or misc whatever, but they always provided a “summary” of total payments and fees collected.

                So yeah, technically you probably don’t need a return for a kid making cash babysitting money but if you want the benefits of tax-free growth in a Roth the extra effort is probably worth it.

                Give these a glance: 529 vs Roth IRA for college funding?

                #93619 Reply

                  Yes, you have to file it even without a 1099. My CPA said it’s considered tax evasion if you don’t file it.

                  #93623 Reply

                    The contributions made March 2023 of $6000 or so each to 2022 and 2023 tIRA are not by themselves an overcontribution. What are you trying to do this year and who or what is telling you it’s an overcontribution?

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