Retirement tax questions

If you withdrew a 2021 contribution with no earnings in 2022 before the due date, then you will get a 2022 Form 1099-R in 2023 with code P. This Form 1099-R will have to be included on your 2021 tax return and you have two options: 

• You can wait until you receive the 2022 1099-R in 2023 and amend your 2021 return or
• You can report it now in your 2021 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2022 1099-R into the 2022 tax return since the withholding is reported in the year that the tax was withheld. The 2022 code P will not do anything in the 2022 tax return but the withholding will be applied to 2022.

To create a 1099-R in your 2021 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2021?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution minus earnings)
7. Box 2 $0
8. Box 7 enter P
9. Check the "IRA/ SEP/ SIMPLE" box 
10. Click "Continue"
11. On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.