MaryK4
Employee Tax Expert

Get your taxes done using TurboTax

You would need to enter the 1099-R with ONLY the Code 8 amount for the 2020 tax return.  The 8 code should be the interest earned on the excess amount while it was in the account. 

 

The P code indicates that it was taxable income for the prior year- it should have been included in her W2 income so it gets reported in 2019.

 

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