1) If you show $0 in box 2a then it seems you had no earnings with this return of excess contribution.
2) If you have no earnings in box 2a then you do not need to amend the 2023 return since only earnings would be taxable. All that TurboTax would do is to add an explanation statement.
If someone has earnings on a 2024 Form 1099-R with code P and J then you need to amend the 2023 return since the code P on a 2024 Form 1099-R means "Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2023". Also, Pub 590-A states "Include the earnings in income for the year in which you made the contributions, not the year in which you withdraw them". And technically a contribution made in 2024 for 2023 is deemed to have been made in 2023.
You do not need to pay the 6% penalty if you requested the return of excess contributions and earnings. Please make sure you indicate in the IRA contribution interview that you withdrew the excess contribution by the due date:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Traditional IRA”
- Enter the Traditional IRA contribution
- Continue until the penalty screen and enter the excess contribution amount withdrawn.
Pub 590-A states: "You won’t have to pay the 6% tax if any 2023 excess contribution was withdrawn by April 15, 2024 (including extensions), and if any 2024 excess contribution is withdrawn by April 15, 2025 (including extensions)". Therefore, you have until October 15th, 2025 to remove the excess contribution plus earnings.
If you had no earnings then it is fine that the custodian only returned the contribution. You will add the 2024 1099-R with code 8 on your 2024 return so TurboTax can add the explanation statement.
[Edited 4/11/2025| 10:36 am PST]
@susieq1013
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