@DaveF1006
@macuser_22
I had excess contribution in 2021 and got the payment + earning in January 2022. I want to do it correctly now so it wouldn't need any amendment later. I know that if I add the excess amount now before April 15 2022 for 2021 tax filing I can ignore 2022- 1099-R code P and I just need to file 2022 1099-R code 8 next year.
however once I put all the numbers based on w2, the tax software automatically add taxable values once the value on box 12 of my w2 goes above the limit and it will put that surplus value as a taxable amount. on the other hand I am adding that amount as 1099-misc and I am paying taxes and that going to be double counting and taxation. My solution was reducing the w2 box 12 to the 401k limit (decreasing that with same excess amount) to avoid that error in software) and since no where in tax document that box 12D goes to IRS that won't cause any problem for my tax filing and calculation or possible audit. am I right?
