@cweis wrote:
The first post in the chat mentioned if there is tax witheld that I would need to come back and revise this next year. I know that federal and state tax was witheld at 10% each and can get all those numbers. Can you please clarify that I can do this if I had tax witheld?
"You can report it now in your 2020 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or box 14 State withholding. Then you must enter the 2021 1099-R into the 2021 tax return since the withholding is reported in the year that the tax was withheld. The 2021 code P will not do anything in 2021 tax return but the withholding will be applied to 2021."
For an excess in one year returned in the following yer it makes not sense to have tax withholding since the excess must be reported in the tax year that the excess was *for* but the withholding can only be reported in the year actually withheld, so the withholding will not pay the tax on the excess.
If this was a 2021 excess returned in 2022 then the 1099-R should have a code "P" in box 7 and the box 2a amount is taxable in 2021, then if there is box 4 withholding that can only be claimed on the 2022 tax return next year.
**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.**
