@jtk321 wrote:
Thanks for the reply. Based off the turbo tax help page I linked in my post, I reported it in TT as "Other income not already reported on a Form W-2 or Form 1099". Boxes 1 and 2a are the same (fully taxable), and the contributions were to a traditional 401k (coded D on W2 Box 12). In my 1040, boxes 5a and 5b are empty, as I did not have the 1099 at that time. The $37 is included in line 1 of my 1040, and specified on my "Wages, Salaries, & Tips Worksheet" under line 9b, with a custom label of "2021 Return of excess 401(k) deferral".
It is not "Other Income" is is a 401(k) distribution that can only be reported on the 1040 line 5a & 5b.
If you do not amend 2021 and remove the Other Income and report it using the 1099-R then you will be getting a letter from the IRS in amount a year and a bill for the unreported 1099-R. The overall tax might not change but the IRS will considered it to be unreported income. The IRS only sees the 1099-R that the payer reported and if not on line 5a/b will consider it unreported income. It is probably easier to amend now while it is fresh than in a year or so when this has been long forgotten.
**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.**
