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Deductions & credits
The effect of the contribution and withdrawal on your tax returns depends on whether the 2022 contribution was deductible. You don't need to amend your 2022 return in order to handle the 1099-R for 2023 correctly unless there was an error on the 2022 return.
If the IRA contribution that you made in 2023 and entered on your 2022 return reduced your taxable income for that tax year, then when you withdrew the amount in 2023, the amount would be taxable on your 2023 return.
If your contribution reported on the 2022 return wasn't deductible, then as @ThomasM125 states, you would still enter the withdrawal on your 2023 return but indicate where prompted in TurboTax that you made non-deductible contributions to your IRA. Your 2022 return should include a Form 8606 if you reported contributions that weren't deductible.
See this TurboTax tips article regarding Form 8606 and nondeductible IRA contributions.
Any money you contribute to a traditional IRA that you do not deduct on your tax return is a “nondeductible contribution.” You still must report these contributions on your return, and you use Form 8606 to do so.
Reporting them saves you money down the road. That’s because no individual’s money is supposed to be subject to federal income tax twice. Form 8606 gets it “on the record” that a portion of the money in your IRA has already been taxed. Later on, when you take distributions, a portion of the money you get back will not be subject to income tax.
TurboTax will ask you questions in the 1099-R section to determine if the distribution is taxable.
See this IRS webpage regarding the IRA deduction limits.
If you don't report the 1099-R on your 2023 return, the IRS information matching program will pick it up and may generate a notice proposing to tax the amount.
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