I got a 1099-R for 2019 taxes due to overfunding a 2018 Roth IRA. I had contributed too much in 2018, and when I was doing my taxes, I found this out. Because of that I had withdrawn the amount that was required before taxes were due in 2019 for the 2018 taxes. However, it appears I need to Amend my 2018 taxes. In doing so, I'm not exactly sure what needs to be changed.
The 1099-R should have a code JP in box 7, the returned excess amount in box 1 and if there are any earnings the earnings show in box 2a which will be taxable income on line 15b on the 1040 form and also subject to a 10% early distribution penalty if you are under age 59 1/2. This goes on your amended 2018 tax return. In the interview you select that it is a 2019 1099-R, not 2018.
And the 1099-R will be a 2019 1099-R received next January in 2020 (not 2019). Nothing goes on your 2018 tax return.
Still looking for clarification:
Since I currently have a 2019 1099-R, box 1 with $800, Box 2a $0.00, Box 2b unchecked, Box 7 PJ. This was due to maxing out 2018 Roth at $5,500 earlier in 2018, and having made too much at the end of 2018, where I had to get a portion refunded.
Question 1: Am I required to Amend 2018 taxes. Note: It appears in reviewing 2018 taxes "IRA Contrib Wks" the amount has already been subtracted.
Question 2: I do not see a line 15b on 1040 (2018); only line 15.
Question 3: Do I need to do anything to my 2018 taxes (amend), since 2019 1099-R, line 2a is $0.00.
Generally, on the 1099-R the code P indicates "Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2018", and you will have to amend your 2018 tax return to enter the 1099-R unless you already had "created" a 1099-R when you filed your 2018 taxes last year.
In 2018 the IRA taxable amount would be on line 4b (15b is for years prior to 2018).
Since your 1099-R has $0 in box 2a it will not change your taxable amount on your 2018 tax return. Any amendment would be only informational.
Perfect answers - Thank you so much! Additional questions we are almost there:
Question 4: 2019 1099-R should be filed under 2018, and then Amend the tax return.
Question 5: Should I remove the 1099-R from the 2019 filing since, I'm filing it under 2018, or file it with both 2019 and 2018.
Question 5: Do I amend both federal and state returns for 2018.
Yes, the 2019 1099-R with code P will be filed under 2018.
You do not need to waste your time to delete the 1099-R from your 2019 tax return because the code tells TurboTax to ignore it. But if you prefer to delete it please follow these steps:
Yes, you would amend both returns.
You are welcome.
Something still doesn't seem right in filling out 1099-R as a part of the 2018 amending. 2018 1099-R, Box 7, when I select "P" it states "P-Return of contribution taxable in 2017." This is for contribution made in 2018, not 2017. Also I have a 2019 1099-R, which doesn't seem reasonable to create a 2018 1099-R.
After you entered the 2019 1099-R in your 2018 tax return, TurboTax should ask "Which Year on Form 1099-R?" and give you the option to select 2018 or 2019. Select 2019 and TurboTax will calculate it correctly.
this same thing happened to me while I am filing my 2019 taxes. It asks if the 1099 R is for 2019 or 2020. It is for 2019 I thought but now it asks me to ammend 2018. There is only a distribution code R on my return in box 7
The code R means: Recharacterized IRA contribution made for 2018 and recharacterized in 2019. Therefore, you need to amend your 2018 return. Please see How do I amend a 2018 return in TurboTax?.
To report the recharacterization and earnings you will enter the 2018 IRA contribution in the IRA contribution interview section and then say "yes" to the question "Did you switch from a Roth to a Traditional IRA - recharacterize" and enter the original contribution amount.
Hi,
I have very similar situation for contribution made in 2019 and withdrawn in January 2020 and my brokerage will provide 1099-R only in 2021. Here are few questions I have :
1) For Box 7, the suggestion is to use codes P and J. Why use P (Return of contribution taxable in 2018) while code 8 (Return of contribution taxable in 2019) seems correct?
2) For the question "Which year on form 1099-R?" I have to select 2020. Is that correct? I am getting a prompt to amend 2018 return when I select 2019 instead of 2020.
3) Do I also have to file Form 4852 by selecting "Need to prepare a substitute 1099-R"?
This is the IRS website for substitute 1099-Rs IRS 1099-R Substitute . If you scroll down to Table 1. A code 8 is for 2020 and a code P is for 2019. Your reasoning was sound, but P is the correct thing to post.
My Issue is fairly similar. A 2020 1099-R with code JP. I understand from the other answers this goes on an Amended 2019 return. Where my question differs is there is a 2020 1099-DIV from the $25.27 capital gain that occurred as the excess had to be pulled out.
Does this 1099-DIV go on the Amended 2019 return as well?
No, the 1099-Div 2020 will go on your 2020 tax return.
Yes, the 2020 1099-R with code JP goes on your 2019 tax return. Please see How do I amend a 2019 return in TurboTax?.
Thank you Dana,
A follow up question. How do I double check that the Amended 2019 is doing what I expect? Per my financial Advisor (Roth IRA Custodian) "What I do know is
1) you have to pay tax on the $27.65 and
2) we took it out in time so you don’t have to pay the 6% penalty on the excess cont. "
You will look at the correct Form 1040 it should have the earnings of $28 (it will round up) on line 4b (taxable amount).
TurboTax will also create Form 5329 and it should show a $3 (rounded up) additional tax on line 4 (10% early withdrawal penalty).
Correct you will not have the 6% penalty on the excess contribution because you withdrew the excess and earnings on time.
Thanks again, I know this is snow balling but hopefully a final question.
In 2019 The State of IL altered my line 16 from $426 to $401 due to my confusion around buying and selling our primary home in the same tax year. In summary, while I don't fully understand what numbers they changed to arrive at this.
Question:
In Amending my and State due to the original issue with the 1099-R.
1)I assume the IL Amended needs to reflect the line 16 $401 change, Correct?
2)How should I go about making that change? I'm guessing they changed the property tax from $8,513 to $8,020
I greatly appreciate your help.
You won't have to amend your IL state return because IL doesn't tax retirement distributions. Please see IL: Does Illinois tax my pension, social security, or retirement income?
You will only need to amend your federal return.
I have a similar issue. Received 1099-R for 2020 in 2021 for over-contribution made in 2019 Roth IRA due to over AGI maximum for any Roth IRA contributions. Box 7 has JP and box 1 has $7518.44 and $6458.87and box 2a has a taxable amount of $518.44 (over age 59 1/2 ) and $458.87 (under 59 1/2) for each of us. I was over 59 1/2 when this occurred but my husband was not (same maximum overage since we file jointly).
Do I have to amend our 2019 tax return and pay taxes on only the box 2 amounts? What form do I file for 2019? and do I remove the 1099-R from my Turbo tax 2020 tax return. Will only my husbands taxable amount be penalized 10% since he was not 59 1/2 or will both? Is there an additional 6% penalty added to the 10% for the period from April 8, 2019 (deposits made) to July 14, 2020 (Deposits removed)?
Totally confused what to file for each person on what year and form numbers, how to calculate taxes due, what lines to fill in? Some directions say file form 1040X or Form 5329 or Schedule 2 (1040SR) or 5498 or all of them???. Which forms numbers do I file for each person, what year are the forms from, what lines do I fill in, how do I calculate the taxes for each person owed and do I remove the 2020 1099-R's from my 2020 tax return. Turbo tax said I had to file a 2019 amendment for these 2020 -1099-R's. Since 2019 taxes were files by paper mail this will all have to be done manually.
Also, do I have to file an amendment for 2019 Hawaii State tax as well?
Yes, you will have to amend your 2019 tax returns to include the 1099-Rs. You do not need to delete the 1099-Rs from your 2020 return because the code P tells TurboTax to ignore the distribution information but if you prefer to delete them:
Only the earnings in box 2a are taxable income. Yes, only your husband will have the 10% early withdrawal penalty on the earnings because he was under 59 1/2 in 2019. You will not have the 10% penalty since you were over 59 1/2 in 2019. The 10% early withdrawal penalty is calculated on part I of Form 5329.
No, you do not have to pay the 6% excess contribution penalty because you removed the excess plus earnings before the due date of the 2019 tax return.
To clarify, you did not file your 2019 tax return with TurboTax or any other tax software?
The 1099-R amount from box 1 goes on line 4a of Form 1040 and box 2a goes on line 4b of Form 1040. The earnings from box 2a will go on Form 5329. Please see About Form 5329 to get the form and instructions. Also, see About Form 1040-X for the form and instructions.
Please see How do I amend my 2019 return? if you used TurboTax for your 2019 return.
Yes, you will have to amend the Hawaii state return as well.
I did use the Turbo tax 2019, but it posted a prepaid tax amount paid with extension that couldn't be corrected on my state tax. So I ended up having to file by paper for corrections. Do not want to attempt to use it to correct these issues when it was impossible to remove that unexplained tax payment. It messed up my entire return.
I did receive two 5498 in August 2020 from Edward Jones but didn't know what to do with them?
Which year and which Form 1040 or 1040X and 5329 will I use to amend 2019? 2019 or 2020 forms?
Do I put both of our figures separately or combined, since only 10% applies to half? Or do I have to file two separate 1040X's and 5329's?
I read 5329 instructions but I still can't figure out which part on that form applies to me? It repeats the same thing in section I and IV, so which section applies to each of us with the age difference and the 10% penalty only for my husband? We didn't have a form 5329 for 2019 at all so that didn't help to clarify which sections applies.
Do we owe additional tax on the 2a taxable amount plus his 10%, or does he pay only the 10% on box 2a taxable amount? I can't really read the correct instructions until I know what year the form 5329 and 1040x will be from? 2019 or 2020?
This is super complicated with the age difference. What tax will I be paying for my box 2a amount?
His will be a tax plus the 10% penalty and do both these amounts go on 1040 and 5329? Please be specific per form year and line numbers?
How would I file this amendment on my 2019 turbo tax when the State had to correct that incorrect pre-tax extension payment that wasn't paid which still appears on my turbo tax copy?
Will I need to file same for state of Hawaii? I don't believe they tax pensions but IRA's, not sure?
Thanks so much.
You do not need to enter Form 5498 anywhere, they are for your records.
You stated the state tax return had a wrong amount but the federal was correct? Then you can amend your federal return using TurboTax. If you need more detailed help try: What is the TurboTax phone number?
You will use the 2019 Forms for 1040 and 5329. The Form 1040X is used for multiple years, you will check 2019 on the top.
You will combine the amount in box 1 and enter it on line 4a and the combine the amount in box 2a and enter it on line 4b on Form 1040. The earnings are taxed at your income tax rate.
You will enter the amount of box 2a on line 1 of Form 5329 and then follow the instructions to fill out the lines 2-4. You will only need to fill out part I. You will have one Form for you and one for your spouse.
In Hawaii, payments from the Roth IRA that are not qualified distributions will be taxed to the extent of earnings including the 10% additional income tax on early distributions.
I have a similar question.
I had over contributed to my Roth IRA in 2019. Prior to filing my 2019 taxes I re-characterized the over contributions of the Roth IRA to a traditional IRA, and reported this in both the 'how much you transferred' section and the 'Roth IRA Explanation Statement' section when I filed my 2019 taxes last year. This year, I received a 1099-R with the year '2020' listed on the form - box 1 of this 1099-R shows the amount that was transferred (recharacterizations + earnings), box 2a (taxable amount) shows $0, and box 2b (taxable amount not determined) is not checked.
When filing my 2020 taxes, TurboTax said I may need to amend my 2019 return.
Q1: Since I already submitted this information when filing my 2019 taxes, do I still need to amend my 2019 return?
Q2: If 'yes' to Q1, what would I change?
Q3: If 'yes' to Q1, do I also need to amend my Massachusetts state return?
Thank you!
Problem with Turbo Tax is we can't locate where the incorrect extension amount came from so can't remove it. All these figures are transferred from the Federal Taxes so still not trusting the program to calculate correctly for 2019. Where could I find this mistake in the program to remove it? Popped up on Hawaii State tax from Turbo tax: It's on form N-11, (2019) line 40, Amount paid with Extension. 790.00?
Question1 : Where is this coming from since I didn't enter this figure at any time?
The instructions say to file separate 5329 if filed joint return, which makes sense, since one pays 10% and one person will not.
Question 2: Form 5329, line 2. Would this be the amounts of $7000 for me and $6000 for spouse, which was the original contribution for each person? The instructions are very vague re what figure goes here, if any? Why should I pay taxes on money I already paid taxes on before making the Roth deposit, so I'm assuming, the 7000 and 6000 should be on this line 2 to subtract from the taxable amount ? This would then calculate the Taxable amount from 1099-R, 2a on Line 3. Why don't they just say, enter 1099-R 2a on Line 3?
Question 3: Do I need to file State Schedule AMD, Explanation of changes on Amended Return as well?