jpdomingo
Level 1

403b excess in 2020

Experts...

So, I was able to work with  my employer and the 403b Services Company (Lincoln Financial) to file an excess contribution refund.  They were able to fulfill my request and send my refund prior to April 15th, 2021.  However, I don't want to wait until they send me my 1099-R forms later and file an amended tax return.  So I want to report the excess income in my 2020 tax return in TurboTax.

 

The challenge is that the refund they sent me has BOTH the excess deferral amount AND the earnings, as well as federal and state withholding.  I know that they will send me a Form 1099-R for my excess deferral (taxable for 2020, distribution category "P") AND a Form 1099-R for my earnings attributed due to the excess deferral (taxable for 2021, distribution category "8").  Since I want to file the excess deferral refund income in my 2020 taxes, I can easily report that amount on Turbo Tax as "Other Earned Income" without a 1099-R.  But how do I report the federal and state tax withholding amounts on TurboTax for this particular scenario!

 

Thanks in Advance Experts!

 

Cheers!

John

‎April 10, 2021 1:07 PM
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DanaB27
Expert Alumni
Expert Alumni

Get your taxes done using TurboTax

The withheld taxes will have to be entered on your 2021 tax return when you receive the 1099-R. They will be credited towards any tax amount due on your 2021 tax return.

 

 

Please follow the steps below to report the excess deferral distribution:

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Scroll  down to "Less Common Income" and click "Show More"
  4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
  5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
  6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
  7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
  8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
  9. On the "Any Other Earned Income" screen enter "2020 Excess Deferrals" for the description, enter the amount and click "Done".

 

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‎April 10, 2021 1:30 PM
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