@ThomasM125 wrote:
You need to enter the excess earnings in TurboTax by using the following menu tabs, so that you pay taxes on the income that was from the excess contributions:
- Federal
- Income and expenses
- Less common income
- Miscellaneous income
- Other reportable income
Enter IRA Ex. Inc. for the description and then the amount.
@ThomasM125
In 10 or more years answering IRA questions I have never heard of that. As far as I know a return of contribution can only be reported with a 1099-R form with a code 8J or PJ in box 7 (or possible just J if it was returned as an ordinary distribution and not a "return of contribution") , that is issued by the financial in institution that returned the contribution and any taxable earnings would be reported in box 2a.
I have reviewed the 1099-R rules and the IRS Publication 590A an can find no authority in the rules or tax law that allows the returned contribution or earnings to be reported as "Miscellaneous income."
Please cite the IRS authority or tax law that allow this. I am very curious what the reference is that allows this.
**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.**
