1099-R Code P

Forum|Forum|5 years ago
April 7, 2021
1 reply
9 views

I have received a 1099-R with a code P. Turbo Tax is indicating that I must ammend my 2019 return. I am wondering if this is really necessary, here is why. I contribured $6000 to my IRA and Roth in 2019. Due to a bank error, some recharacterization was done, resulting in 7000.00$ being transfered around. Thus, the bank issued me the 1099-R stated in box 1 that 1000.37 gross distrubution, and in box 2a that 0.37 as taxable amount. Seems strange to have to ammend a previous year over 0.37 cents. Please advise if I should ammend 2019 return as instructed? Thank you.

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ThomasM125

Level 15

You probably don't need to amend the return since the taxable amount of the distribution is listed in box 2, and it won't affect your income tax. So, the IRS should not assign additional income to you for 2019.

The worse that would happen is you would get an invoice from the IRS assessing additional tax, to which you could respond with a copy of the 1099 form proving that you reported your income correctly in 2019.

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dmertz

Level 15

The $0.37 of income taxable on your 2019 tax return rounds to $0, so there is no need to amend.

druss75Author

Level 2

This makes a lot of sense to me. Thank you for responding and for your assistance. Is it easy or complicated to ammend last years return? Should I just go back and put it in to be safe? I appreciate your help.