Need to file?

[L.S.]

Client has 1099R with gross distribution of $20,665 and taxable amount of $402. Client not under limits to file if I use $20,665, but is if I use $402, she is. Does she need to file?

Thanks.

[NECPA in NEBRASKA]

I would file, because I don't know that the IRS pays much attention to the taxable box. If you don't, it will probably generate a CP-2000 down the line.

[kcjenkins]

Yes, the test for need to file is based on gross income, not net or taxable income.