No. It is not a software bug. The earnings are legally taxable on your 2025 return, even though you will not receive a Form 1099-R until next year. To report excess earnings on the contribution in 20...
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No. It is not a software bug. The earnings are legally taxable on your 2025 return, even though you will not receive a Form 1099-R until next year. To report excess earnings on the contribution in 2025, enter the Form 1099-R you will be receiving next year as if you had it now. Go to Wages & Income on the left panel within your TurboTax account Click on the +Add more income box Scroll down to Retirement Plans and Social Security and click the down arrow to expand Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) Click on +Add a 1099-R, select the Change how I enter my form box On the next screen, you can select Type it in myself, or other options, then Continue Select the box on the top left for Financial institution or other provider (1099-R), then Continue Enter the provider's information, then Continue Enter the details from your Form 1099-R In Box 1 enter the total distribution, plus earnings, In Box 2a enter the earnings Choose Distribution Code J in first Box 7, then check the, "I have more than one value in Box 7" box Enter Code P for second Box 7, then Continue Select No for "Is the IRA/SEP/Simple box checked?", then Continue Select 2026 for, What year is on your 1099-R?", then Continue, answering the questions as you go When you reach, "These situations may lower your tax bill" Enter earnings in the Corrective distributions made before the due date of return box, which is near the bottom Note: When you receive your Form 1099-R next year, you can ignore it, unless there is Box 4 Federal Tax withheld. If that is the case, you will need to enter the Form 1099-R to report that withholding.