@bnbalison2 wrote:
What if I contributed in July 2020, reversed it in March 2021, identified the reversal on the 2020 return, BUT then received 1099R in early 2022 showing the reversal and taxable earnings from 2021.
My 2021 tax return TurboTax does not put the earnings into line 4B of 1040 like I had hoped.....do I manually add it or is there a different way? I really don't want to amend 2020 return.
Also, I'm confused on your sentence in the response "Enter the explanation for the excess contribution and that you are reporting a 2019 1099-R on your 2018 tax return to avoid having to amend in 2019." Do you mean to say reporting on 2019 tax return to avoid having to amend the 2018 return?
Thanks
No. You cannot pay the tax on the box 2 amount in 2021 since it was a 2020 contribution that can only be reported on an amended 2020 tax return. I assume you received a 2021 1099-R with a code "P" in box 7 that can only be reported on an amended 2020 tax return. Returned earnings are reported in the tax year that the contribution was *for*, not the year returned.
**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.**
