Reporting excess Roth contribution earnings

[shelleyfl59]

I removed excess Roth contributions prior to filing my extension this year. I will not get the 1099R from Vanguard until 2025. Can I just wait and file an amended return next year or is there a way to declare this on my 2023 taxes? Someone mentioned creating a dummy 1099-R, but I am a little nervous about the information not matching next year's 1099. Thanks!

[dev145 · Accepted solution]

Hello shelleyfl59,

If  you are comfortable and know the excess and earning amounts, you can report by creating 1099-R. You can also report earning as other reportable income without going thru 1099-R only if you know the earning amount. If you are not sure, you can always wait and file amended return when you receive 1099-R next year. 

Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful!

[shelleyfl59]

Would I report this under Interest Income?

[dev145]

No, you will report this under Other Income. You will find other income section  under Wages and Income -> Less Common Income -> Miscellaneous Income.  You might have to click on "show all topics" to find other income section.

Regards,
TurboTax Expert

[dev145]

Here are steps on how to create dummy 1099-R if you like. 

To create a Form 1099-R in your 2023 return please follow the steps below:
 

1. Login to your TurboTax Account
2. Click on the "Search" on the top right and type “1099-R” ,  Click on “Jump to 1099-R”  or go to Wages and Income -> Retirement income.
3. Answer "Yes" to "Did you get a 1099-R in 2023?"
4. Select "I'll type it in myself"
5. Box 1 enter total distribution (contribution plus earning)
6. Box 2a enter the earnings
7. Box 7 enter J and P
8. Click "Continue"
9. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
10. Click "Continue" after all 1099-R are entered and answer all the questions.
11. 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".

Once this is done, You will see amount on line 4a -  total distribution and line 4b - earning on form 1040. 

I hope this information was helpful!

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