Yes, you will only enter the excess deferral amount of $1,144 on your 2024 return. The earnings will be taxable in the year of the distribution and therefore you will report them on your 2025 return.
Please note for the Tax Year 2025 tax filing due April 15, 2026:
- 2025 Form 1099-R with Code P in box 7 can be ignored if you reported the excess as described by MinhT1 above in 2024.
- However, the earnings on 2025 Form 1099-R with Code 8 in box 7 should be reported in 2025.
The IRS will get the 2025 Form 1099-R with code P and know that this is reported on your 2024 return. The IRS can see that you reported the excess deferral on line 1h of your 2024 Form 1040.
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