@wxhuangtt wrote:
Thank you! I went back to my 2020 version of turbo tax and tried to amend my 2020 tax return as you suggested. It seems to be working as you suggested. However, I encountered another two problems. (1) I can not type in the distribution code in box 7 of the 20211099-R form as is. I have code P in the 2021 form, if I type in P in the 2020 version of the turbo tax, it will be interpreted as return of contribution taxable in 2019. So I have to use code 8 instead, which is corresponding to return of contribution taxable in 2020. (2) Turbo-Tax shows that I need to pay $300 MA state tax for my state tax amendment. I think it is wrong. I would think only the $105 is taxable, not the $6000 distribution. However, TurboTax seems to calculate the tax on the $6000 rather than the $105.
When you enter a 2021 1099-R with a code P it will ask if it is a 2020 or 2021 1099-R - say 2021, that advances the year by 1. Every year code P advances by 1 so a 2021 means taxable in 2020. The TurboTax software assumes it is a 2020 1099-R so the year is 2019 but when you tell it is 2021 then it will apply it to 2020.
**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.**
