RobertB4444
Expert Alumni

Get your taxes done using TurboTax

You're going to create a substitute 1099-R.  Go to the retirement income section and click start next to the 1099-R entry.  Check the box that says "I need to create a substitute 1099-R".  Then enter the information about Vanguard and put the entire amount that you took back out into box 1.  In box 2a put just the earnings from the amount.  Then in box 7 enter code 8 (for corrective refunds).

 

This will make the earnings taxable this year.  In 2026 you will receive a 1099-R from Vanguard that will look exactly like this and will be marked 2025.  When you receive it you will ignore it because you already entered it on your 2024 taxes.  Entering it this way avoids penalties.

 

@rrk_ms_bharat 

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