1099-R

[042816]

I submitted a 1040SR a few days ago and it came back rejected as the federal form states "As the Payer's federal ID# does not match what IRS has on file".  I'm Looking at 1099R form as I type - it indicates that I am () the recipient, and Its Payer's Tin #and the Payers address is

[MichelleLO]

You may want to confirm with the Payer of your 1099-R that the Federal ID number is correct in their system. If you continue to have issues, please contact TurboTax Customer Support. 

For more information on fixing a rejected return, please see here.

@042816 

[h431]

I'm in the exact same pickle!

I started on my 2019 taxes in early 2020, and discovered I could no longer contribute to my Roth IRA.  I asked for a refund on the contributions and got it with $100 of earnings in March 2020.

I had to do the same thing for my 2020 contributions and got them back last month also with earnings.

They sent me a 1099-R for the refund of the 2019 contributions that I received in 2020.  My $100 is taxable.  The form 1099-R says it's for 2020, and Turbo Tax says I need to amend my 2019 taxes. 

My questions are:

1.  Does this really go on the 2019 taxes?  Will I have a penalty?

2.  How to I pay my tax on my 2020 excess contribution that I got back in 2021 before I get the 1099-R?

[dmertz]

The $100 of earnings are subject to income tax on your 2019 tax return.  If you were under age 59½ at the time of the return of contribution the $100 is also subject to a 10% early-distribution penalty on your 2019 tax return.

If your 2019 tax return does not already reflect this, you must amend your 2019 tax return.  you do this in 2019 TurboTax y entering the code PJ 2020 Form 1099-R as received and indicating in the follow-up that the Form 1099-R is a 2020 Form 1099-R.

[h431]

Thank you!

And for the earning for the mistaken 2020 contributions, where I got a check this year but no form, where would I enter that into Turbo Tax?

[dmertz]

If in 2021 you obtained a return of a contribution made for 2020 that included a distribution of earnings, in 2020 TurboTax enter the code PJ 2021 Form 1099-R that you expect to receive near the end of January 2022.  The amount you enter in box 2a will get added to your 2020 income on Form 1040 line 4b and, if you were under age 59½, will appear on Form 5329 Part I the same way that entering the code PJ 2020 Form 1099-R into 2019 TurboTax does on your amended 2019 tax return.

[Christal2021]

I don't want to report the full amount of my distribution on my 1099-R.  How can I only report 1/3 over the next 3 years?

[PattiF]

In order to have your distribution reported over a three year period, you would start by entering your 1099-R. 

When you complete the retirement section (1099-R) the interview will ask whether you took an early withdrawal due to COVID.  First it will ask if you were diagnosed with it, and if you answer no, it will then ask if your business suffered as a result of it. 

If you answered yes to either question, then it will tell you that you qualify to have the distribution reported over a three year period. The software will also ask you if you want to pay the tax due over three years or not. When you view your tax return before filing, you can see the completed Form 8915-E. This reports the distribution over a three year period.

If you have a problem with reaching the questions about the COVID distribution, you may need to delete a 1099-R that you had previously entered and manually enter the 1099-R.

[dmertz]

Christal2021, your question is unrelated to the topic of the original question in this thread.

Spreading the income in equal parts over 3 years requires reporting the distribution as a disaster distribution or a coronavirus-related distribution.  TurboTax will ask if the distribution was one of these.

[Hopa9P]

The pronoun usage is very confusing here. Why do they assume the first name on a return is the one doing the taxes? The directions seem to be talking to my husband, who has never done our taxes. I'm also a bit confused by the 9a question. The total distribution is for an inherited IRA owned solely by me (the wife) from my mother, so I suppose I put 100%? I'm having trouble visualizing a situation in which an RMD would be divided/shared.

[DawnC]

The first person listed on the return is the taxpayer and the second person is the spouse.   I have the same thing going on; I am 2nd on the return, so listed as spouse.    It can be confusing when the spouse is the one preparing the tax return.   But for tax purposes, you are both referred to as taxpayers.   In your situation, since your spouse is listed first, forms specific to him will have -T added to them and your forms will have a -S.    For example, if you both have self-employment tax reported, his form would be labeled Schedule SE-T and yours would be labeled Schedule SE-S.   TurboTax will ask you to verify the owner (you or your spouse) for every tax document you enter.  

When you enter that 1099-R (or any other form) make sure that you indicate that it is your form, see the image below.   And all distributions are reported on Form 1099-R, not just required minimum distributions.  When there is a total distribution, there can be multiple recipients.   You should enter the form exactly how you see it.      

BOX 9a - If this is a total distribution and it is made to more than one person, enter the percentage received by the person whose name appears on Form 1099-R. You need not complete this box for any IRA distributions or for a direct rollover.   @Hopa9P

[rntzartzev]

The 2020 Turbotax does not ask me for the 1099-R association - just assigns it to me and I can not change that. The form actually is actually for my spouse. Please help?

[DoninGA]

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@rntzartzev wrote:

The 2020 Turbotax does not ask me for the 1099-R association - just assigns it to me and I can not change that. The form actually is actually for my spouse. Please help?

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On the screen for choosing the type of Form 1099-R that was received you are given the option to select who the form belongs to when filing as Married Filing Jointly.

[VolvoGirl]

So delete that 1099R and start it over.

[042816]

I already rec,d my return and recede this 1099 after that