Thanks everyone for the advices. I have a similar tax situation where I overcontributed (in 2022) when switching companies. The excess was withdraw the following year (Feb 2023). I got a 1099-R in 2024 with code P in box 7. I read some other posts on this forum. The suggest was to amend prior year tax. But this post suggests that the correction can be done in the tax year when I received the form (2024). Could someone help me understand why the answers are different? Is it because of the $ threshold?
Example:https://ttlc.intuit.com/community/taxes/discussion/1099-r-code-p-what-to-do/00/1442903
If I follow the instructions here, 1) I do not need to amend my 2022 tax; 2) I do not enter the 1099-R (with code P) in my normal 1099-R section and 3) I would need to report the excess under "Miscellaneous Income" section. Am I correct?
Any advices are appreciated!
