Hello, first off, thank you in advance for any guidance that you all might be able to offer me.
This all started back in 2021 when I mistakenly over-contributed to my roth-IRA, and didn't realize until getting ready to file. I went through the paperwork to have the excess contribution removed prior to filing for 2021, and the 1099-R showing this distribution came for 2022 showing a taxable amount of $0 in box 2a, and code PJ in box 7.
Now, this year, when putting together my 2022 return, TurboTax indicated that because this distribution was against a 2021 contribution, that it did not belong on my 2022 return, rather that I need to amend my 2021 return. Going back into my 2021 return, I found how to start an amendment, enter this 1099-R, and the software doesn't complain. However, when I input this form, I see a ~5% amount owed show up under state (MA), but when checking for errors, it says "We don't detect any differences between your original 2021 return and your amended return"
I am confused both why I'm seeing that I owe state taxes on this 1099-R amendment for 2021 considering it was withdrawn prior to filing, as well as why the software says it detects no change.
Any guidance would be greatly appreciated!
This form 1099-R relates to the excess contributions which you have already withdrawn before the tax due date of 2021. Code P means that this relates to 2021.
You do not report this 1099-R on your 2022 tax return and there is no need to amend your 2021 ta return.
Thanks for your help with this @MinhT1!
Just so I make sure I understand correctly - there is absolutely nothing that I need to do with this form? I understand that it doesn't belong on my 2022 return, but am confused since the software advised potential need for an amendment for 2021. Is this because it's recommending amendment based on Code-P, but because the taxable amount is $0, I don't actually need to do this?