Do you need to file an amended return when receiving 1099-R?

[netboymw]

Received a 1099-R in 2020. Been using TurboTax online for years. Here's the sequence of events:

1. Contributed to a Traditional IRA in 2019.
2. In early 2020, before filling 2019 taxes, recharacterized traditional IRA to roth IRA.
3. Before April 2020, filed 2019 taxes. 2019 taxes did not list Traditional IRA contributions. Line 4a was blank therefore no deductions taken. There was a additional/supplemental sheet attached to 2019 taxes explaining reason for characterization (reason provided by me, worksheet generated by TurboTax)
4. Received a 1099-R in year 2020 (because recharacterization was done in 2020).

Do I need to file an amended 2019 tax return?

[DanaB27 · Accepted solution]

No, you do not need to amend your 2019 return since you included the explanation statement for the recharacterization on your 2019 tax return and that is the only way to report it. The 1099-R with code R will not do anything on your return.

[kareny-67]

I have the same situation  about amending 1099R for the year 2020. Now understood that I don't need amend it for 2020. Then do I need to report the 1099R in my 2021 tax return? If so, do I need to amend my 2021 return? Since I have filed the 2021 tax return and didn't report 1099R ? Thanks a lot!

[DoninGA]

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@kareny-67 wrote:

I have the same situation  about amending 1099R for the year 2020. Now understood that I don't need amend it for 2020. Then do I need to report the 1099R in my 2021 tax return? If so, do I need to amend my 2021 return? Since I have filed the 2021 tax return and didn't report 1099R ? Thanks a lot!

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You do not enter a 2020 Form 1099-R on the 2021 tax return.  Only a 2021 Form 1099-R can be entered on a 2021 tax return.

[kareny-67]

I received a 2021 1099R form.  Turbotax shows that I have to amend my 2020 tax return. From the previous information, I understood that I don't need to amend it because I provided an explanation for the recharacterization from Traditional IRA to Roth IRA on my 2020 tax return. Should I report the 2021 1099R on my 2021 tax return?

[DanaB27]

No, you don't need to enter the 2021 Form 1099-R with code R on either the 2020 or 2021 return. You only report the recharacterization with an explanation statement and the steps below (on your 2020 tax return):

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution
5. Enter the Roth contribution amount 
6. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
7. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
8. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

@kareny-67

[kareny-67]

I did all of the steps for 2020 tax return and provided an explanation statement. So, I don't need to enter the 2021 1099R with code R on my 2021 return. Thanks!