I am having issues with trying to figure out how to enter a 1099-R that we received in 2024 for a 2023 ROTH IRA overage contribution. Our income was too high and we were only able to contribute a portion and the rest was REMOVED PRIOR to filing our 2023 taxes. I noted that when I went through the questions when filing 2023 taxes that we were removing before filing.
Our 2023 taxes show we contributed only the amount that was allowed.
In 2024 we received a 1099 showing the amount that was removed which was the overage + the interest made and that shows in box 1. In box 2 there is an amount of interest that should be taxable. The distribution codes are P & J
I know we owe taxes on the interest portion but is it taxable in 2023 or 2024?
If it is in 2024 which is when it was actually removed from our Roth IRA’s how do I enter the 1099 R? Do we not enter Box 1 and only enter box 2?
Do we need to amend our 2023 taxes?
I have read about doing a substitute 1099, etc but I don’t see where I needed to when doing our 2023 taxes. To make things worse, we did it again in 2024. I should note that we used the Home and Business Edition in 2023 but are using the Deluxe version in 2024.
