DanaB27
Expert Alumni

After you file

You can ignore the Form 1099-R with code R for the recharacterization. A Form 1099-R with code R will do nothing to your return. The recharacterization should have been reported on your 2022 tax return with these steps:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Select “Roth IRA
  5. Answer ‘Yes” on the “Roth IRA Contribution” screen
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution
  7. Enter the Roth contribution amount $6,000
  8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount of $6,000 (no earnings or losses) on the next screen.
  9. TurboTax will ask for an explanation statement where it should be stated that the original $6,000 plus $2,400 earnings were recharacterized.

 

They should have send you a Form 1099-R with code P and 1 for the return of a 2022 contribution plus earnings but since they send you Form 1099-R with code 8 and 1 you want to enter it on your 2023 return and amend your 2022 return to remove the Form 1099-R with codes P and 1. Please be aware you do not have to pay the 10% early withdraw penalty on the earnings. The tax law regarding this was changed starting December 29, 2022.

 

  1. Click "Continue" after all 1099-R are entered and answer all the questions.
  2. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

 

 

Please see How do I amend my federal tax return for a prior year?

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