@craigmills4600 wrote:
For 2020, "Examples of Excess Salary Deferrals" examples indicate that I SHOULD manufacture a 1099R and report Code P. This does not align with the discussion found here for the previous year. Should I add the Excess Deferral amount as Wages on line 7? Do I list the total distribution as wages? I'm confused.
If it is a 2020 excess deferral then the returned amount does go on the 1040 line 1 (line 7 was prior years 1040).
Either the 1099-R with a code P or the Miscellionious Income puts it there - they both do the same thing.
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the returned excess to your 2020 wages on line 1 exactly the same way that the 1099-R would. The only information that is sent to the IRS is the line 1 amount.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
