2nd attempt at this q.. TT deleted/archived my previous submission
I had excess contribution to my 401K in 2017, which was refunded to me in January of last year but I was incorrectly told this would be taxable income in 2018 so I did not add to my 2017 return. Received a 2018 1099-R (code P) this year. I have generated a "amended" copy of the return in TT to edit it.
Q is how to enter this income on amended 2017 tax return. In retirement section>1099-R>clicked yes on did you have any rollover, withdrawal in 2017>when entering the details, code P is for taxable income in 2016. So, do I enter the refund of excess to my W2 income? If yes, which employer since I changed jobs in 2017 - so employer on Dec 31, 2017? or file this with code 8? or after entering with code P, somewhere TT will clarify and make sure it applies to 2017 income?
Also, does this income need to be reflected in 2018 return?
Thanks!
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A 2018 1099-R with a code "P" in box 7 is taxable in 2017, the year the contribution was made, not 2018.
You must amend 2017 to report it. The 2017 1099-R interview will say that code P means "Return of contribution taxable in 2016", but the interview will ask if this it a 2017 1099-R or a 2018 1099-R. Say 2018 and the "taxable in 2016" becomes "taxable in 2017" (the year advances by 1 each year).
It is not reported in 2018 unless there were earnings in which case the earnings should be reported on a separate 2018 1099-R with a code 8 on box 7 to be reported in the year the earnings were returned.
A 2018 1099-R with a code "P" in box 7 is taxable in 2017, the year the contribution was made, not 2018.
You must amend 2017 to report it. The 2017 1099-R interview will say that code P means "Return of contribution taxable in 2016", but the interview will ask if this it a 2017 1099-R or a 2018 1099-R. Say 2018 and the "taxable in 2016" becomes "taxable in 2017" (the year advances by 1 each year).
It is not reported in 2018 unless there were earnings in which case the earnings should be reported on a separate 2018 1099-R with a code 8 on box 7 to be reported in the year the earnings were returned.
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