IRA distribution before filing or claiming it as deduction Hi, I opened and funded an IRA account, then changed my mind a week later and withdrew the funds and closed the account before filing my return; there was one dollar in interest. I did not claim the deduction, so there should be no penalty or taxes due on the distribution. I received a form 1099-R from my bank which says the full distribution is taxable. How would I show on my return that this distribution was in fact allowed? Do I need a revised form from my bank? How should I treat the one dollar in interest (I assume that since the IRA arrangement was canceled, it should be taxed at the regular rate.) |