How do I address 1099R?

[RLK03]

I had excess contribution to my Roth in 2022 and I documented in Turbotax Premier 2022 that I withdrew $2000 before I filed in 2022. I received a 1099 R 2023 showing $2139 of which $139 is taxable. I've loaded that information into Turbotax Premier 2033. Is the $139 considered excess contribution or something else? How do I correct this? Thank you.

[DanaB27]

The $139 are earnings on your excess contribution. These earnings are taxable on your 2022 tax return and your 2023 Form 1099-R should have the codes P and J in box 7.

If you did not enter a Form 1099-R for this distribution on your 2022 tax return then you will have to amend your 2022 tax return to add the 2023 Form 1099-R with code P and J:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Enter Form 1099-R information and click "Continue"
6. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
7. Click "Continue" after all 1099-R are entered and answer all the questions.
8. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2021" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.

You don't have to enter the 2023 Form 1099-R with codes P and J on your 2023 tax return unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2023 Form 1099-R into the 2023 tax return since the withholdings are reported in the year that the tax was withheld. The 2023 code P will not do anything to the 2023 tax return income but the withholdings will be applied to 2023.

[RLK03]

Thank you!

[RLK03]

Should I submit the amended 2022 Tax before filing the new 2023 Tax? If yes, do I use the amended tax return as the base for the 2023 Tax return or does it not matter? Thank you.

[DanaB27]

No, you don't need to wait to file your 2023 return. In your case it doesn't matter if you file the 2023 return first or the 2022 amended return.