@ae7943 wrote:
if there is any caveat in filing an amended return now, with code J8 (in TT 2019 amendment software) , and then ignore the 1099R next year.
Yes there are.
1) There is no reason to amend before you receive the 1099-R and if the 1099-R is not what you think it will be then you will have to amend again which is messy.
2) If you amend with a 1099-R code J8 then it would be incorrect and would require amending again. Code J8 is not for a 2019 return of earnings returned in 2020. It would probably be a code PJ. (Code J8 on a 2020 1099-R says it is a 2020 contribution returned in 2020 and cannot go on a 2019 tax return).
3) If you did not specifically instruct the IRA trustee that this was a"return of excess contribution" and not just a normal distribution then the 1099-R might not be coded as a return of contribution at all.
All in all, I never recommend amending before the actual 1099-R is received - there is no good reason to do so.
**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.**
