Yes, I agree you should have a 2022 Form 1099-R with code P for the returned excess deferral which is added to your 2021 wages since you made an excess deferral in 2021 that you removed in 2022 before the deadline of April 15th. Only the earnings distributed would be reported with code 8 in your case and these have to be included in your 2022 wages.
You don’t need to amend your 2021 tax return because you had already included it on your return.
I would contact the issuer and ask to correct the Form 1099-R. Please see this information from Pub 525:
“You should receive a Form 1099-R for the year in which the excess deferral is distributed to you. Use the following rules to report a corrective distribution shown on Form 1099-R for 2022.
- If the distribution was for a 2022 excess deferral, your Form 1099-R should have code 8 in box 7. Add the excess deferral amount to your wages on your 2022 tax return.
- If the distribution was for a 2022 excess deferral to a designated Roth account, your Form 1099-R should have codes B and 8 in box 7. Don’t add this amount to your wages on your 2022 return.
- If the distribution was for a 2021 excess deferral, your Form 1099-R should have code P in box 7. If you didn't add the excess deferral amount to your wages on your 2021 tax return, you must file an amended return on Form 1040-X. If you didn't receive the distribution by April 15, 2022, you must also add it to your wages on your 2022 tax return.
If the distribution was for the income earned on an excess deferral, your Form 1099-R should have code 8 in box 7. Add the income amount to your wages on your 2022 income tax return, regardless of when the excess deferral was made
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
