Amend 2019 Taxes? 1099-R Related

[eld101]

Long story short, when I went to file my 2019 taxes in early 2020, I had found I had over contributed to our Roth IRAs (lesson learned to wait until I file to do this). This year I got a 1099-R for them both (I assume due to E-Trade pulling the extra funds out). When I went to enter in TurboTax this year, it said I need to amend last year with this data. I just wanted to make sure this sounds right..... It does make sense, but what's making me doubt things is that is a "2020" 1099-R.

Can someone confirm I just need to refile with the addition of the two 1099-Rs?

Thank you!

[DanaB27]

Yes, if your 1099-R has to codes J and P in box 7 then you will have to amend your 2019 tax return. P stands for "Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in prior tax year". Please see How do I amend a 2019 return in TurboTax?.

The IRS states:

How to treat withdrawn interest or other income 

You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made. 

[eld101]

It does have the PJ.  Should I wait until my 2020 Tax refund is processed to send this amended return or does it not matter?  

Thanks for the help.

[DanaB27]

You can file your 2019 amended tax return now. You don't need to wait for your 2020 return to be processed.

[GC17]

I have a very similar situation: a 1099-R for year 2020, except the code in box 7 is R (an overpayment to a Roth IRA was recharacterized as a contribution to a traditional IRA). When I enter it in my 2020 return, I get a message that I should amend my 2019 return. The taxable amount in box 2a is 0.00 and the statement from my financial institution says that the recharacterization resulted in a loss, so presumably I would have no tax liability. Do I still need to amend my 2019 return?

Thanks

[ReneeM7122]

Yes, you would need to amend your 2019 tax return even if the taxable amount for your 2020 tax return is 0.  This is because the IRA was recharacterized in order to remove the excess contribution after you fled your 2019 taxes.  Therefore, you need file an amended tax return. 

[Scartlidge69]

I need help they keep rejecting my taxes I never had this happen to me before so I did fix my taxes an it’s says it need my agi from 2019 an I put it in an it’s still coming backed rejected so can you please help me thank you 

[EbonyL122824]

You can follow the instruction in this TurboTax FAQ here on how to locate your AGI. Then proceed to follow the instructions in this TurboTax FAQ to find out where to put your previous year's AGI on your current year tax return. If your tax return is constantly getting rejected due to your AGI, you will need to print and mail your tax return. You can follow the directions in this TurboTax FAQ to do so.

[RyanG34]

I have the exact same situation as "GC17" who posted earlier. My question is WHERE do I amend my 2019 tax return and what needs to be amended....  do I need to add the 1099-R or something else? 

[DanaB27]

It depends, if you had already reported the recharacterization on your 2019 return like below then you do not need to amend your 2019 return: 

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution
6. Enter the Roth contribution amount 
7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
8. 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.

The recharacterization can only be reported like mentioned above, entering the 1099-R with code R won't do anything on your return.

If you need to amend your 2019 return then please see How do I amend a 2019 return in TurboTax? for instructions.

@RyanG34

[RyanG34]

Thank you, Dana! I appreciate your very quick response. 

One last question for you...

I did have the Recharacterization on my 2019 return. However, the amount I listed as the recharacterization was $500 and the total transferred was actually $508.98 (Gain of $8.98) based on the information I received from Fidelity this year (2020).

Do I need to change the amount from $500 to $508.98 in my 2019 tax return using the steps you listed earlier?

Thank you,

Ryan

[DanaB27]

No, you do not need to change the amount on your 2019 tax return. You correctly enter the $500 in Step 6 and 7.  You will only need the earnings for the statement part in step 8.  

@RyanG34 

[d_Hardy]

Same situation, excess 2019 ROTH contribution withdrawn in 2020 with taxable gain and codes PJ. When amending my 2019 return using 2019 turbotax premier if I enter the P code in the 1099-R it indicates that's income taxable for 2018 and so will likely tell me to amend my 2018 and so-on. Do I leave out the P code when entering the 1099-R in my 2019 return, or maybe amend my 2019 return with the 2020 version of TT or maybe something else?

Thanks

[DanaB27]

No, you will use code P with the 2019 TurboTax program and after you entered all your 1099-R information click continue until you see the "Which year on Form 1099-R" screen and say that this is a 2020 1099-R.

@d_Hardy

[rshonerd]

Similar question.  We received a 1099-R marked for 2020 with code P in box 7 and other one with code 8 in box 7.  Does that mean I have to amend both 2019 and 2018 taxes?

Also - There are state related values in boxes 14 (state tax withheld),15 (state payer state no) and 16 (state distribution) on the form.  In the Turbo Tax 2019 software boxes 12-14 are for state data and boxes 15-17 for local information data.  The data on the form does not align to the data in the software. Help!