1099-R 2022 - really need to file amended return?

[Mrerytr]

I have two form 1099-Rs from TIAA for my husband and me.  We are both self employed and are funding our own retirement savings.  They are both 2022 1099-R and show small amounts of gross distribution (around 1K each) and 0 in taxable amount.  I tried to enter then into 2022 taxes but it says I need to amend my 2021 return.  I started to, but it resulted in no additional tax (why would it - we haven't taken any money out) and says, "We don't detect any differences between your original 2021 return and your amended return. If you're sure you need to amend, explain why below."

So do I need to amend? 

[DanaB27]

Was this a return of contribution? What is the code in box 7?

Generally, if your tax doesn't change then you will not need to amend it. If this was a return of contribution all it would do is add an explanation statement for the IRS since you had no taxable earnings.

Please see Do I need to amend? for additional information.

[Mrerytr]

Sorry I should have put that in - Distribution Code in box 7 is R

[DanaB27]

A Form 1099-R with code R for a recharacterization will do nothing to your return. You can only report it as mentioned below. Therefore, you can ignore Form 1099-R with code R. 

You should have reported the recharacterization on your 2021 tax return like this (assuming a Roth IRA was recharacterized as a traditional IRA):

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution
5. Enter the Roth contribution amount 
6. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
7. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
8. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

If you made the traditional IRA contributions nondeductible you will have Form 8606 on your 2021 tax return with a basis listed on line 14.