Retirement tax questions

Gains and losses on excess deferrals returned are taxable/reportable in the year they are received.

Returns of excess deferrals are reported in the year for which the deferral was made.

So yes, your 1099-R for $9641 should be included on your 2022 tax return.  The corresponding loss can also be reported as a negative value in "other income" if it was reported to you in 2022.

If the excess deferral being returned of $386.38 is an excess deferral and not a gain it would properly be reported on your tax return for the year that deferral was made in.  If that is a return of deferrals made in 2022 it should be reported on your 2022 tax return.  If it is a gain associated with the excess deferral it would be reported on your 2023 tax return since you received it in 2023.

Your 401K provider should be providing you with a Form 1099-R for 2022 if this $386.38 is a return of an excess deferral made in 2022.  I would contact your 401K Provider if they are doing something other than this.

If it is a gain associated with a 2022 excess deferral than you would receive the 1099-R in early 2024 and report it on your 2023 tax return.

Assuming you made the excess deferral in 2022 and received it in 2022 all you need to do is enter your Form 1099-R. 

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Enter the information from your 1099-R

Your loss on your excess deferral should be reported in TurboTax as follows: 

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other reportable income" and click "Start"
6. Answer "Yes" to "Any Other Taxable Income?"
7. Enter "Loss on Excess Deferral Distribution” and enter the loss as a negative number (-$500)

Click here for more information regarding reporting excess deferrals.

Click here to contact Turbo Tax for assistance.