Shanks2
Returning Member

Get your taxes done using TurboTax

Box 1 amount is the excess contribution

Box 2 amount is the earnings. Do note that Box 1 amount minus Box 2 amount is the actual excess contribution.

Box 3 distribution code is 2

 You are saying only box 2 amount, i.e., earnings amount will be added? Have to check. Even if this were to be true, we would still be paying tax twice on the earnings amount since the total of the earnings and the excess amount were already included as Other Income in the 2023 return. Do you see my point?

As per publ. 969, if you withdraw the excess amount between Jan 1-Apr 15, 2024 (by the tax due date effectively) then it would be treated as though the excess was not contributed, thus avoiding penalty on the excess and the earnings. And this should be shown as Other Income, which is what we did in 2023 tax return.