1099R 2021 File in 2020 Tax Return

[MNYL]

Hi Sir or Madam,

I have a distribution from Roth IRA due to excess contribution in 2020.    I just received the distribution information (distribution withdrawn amount and earnings), and I can include on my 2020 tax return before filing on 5/17/21.    So next year (2022) when I receive the actual 2021 1099R, can I only report the federal and state withholdings (since these were deducted), and put down the code P & J (if both show) on my 2021 tax return?   No need to put down again the distribution and earnings that I file in my 2020 tax return (per my 2021 1099R info), correct?  Or due to I have the federal and state withholdings, I cannot file with my 2020 tax return and must file in my 2021 tax return (unless I choose not to get back the withholding is amount is smaller than the tax I pay with the earnings in my 2020 tax return)?   

Please kindly advise.  Thank you!!

[DanaB27]

Yes, you can create a 1099-R to report the distribution to avoid amending your 2020 tax return:

1. Click on the "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Answer "Yes" to "Did you get a 1099-R in 2020?"
4. Select "I'll type it in myself"
5. Box 1 enter total distribution (contribution plus earning)
6. Box 2a enter the earnings
7. Box 7 enter P and J 
8. Click "Continue"
9. On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.

Yes, you will enter the 2021 1099-R  that you receive in 2022 on your 2021 tax return as shown. TurboTax ill ignore the income part because of the code P but will apply the taxes withheld from box 4 (federal) and box 14 (state).

[MNYL]

Hi DanaB27,

Thanks so much for your reply!  Just want to confirm in 2022 when I report my 2021 1099R on my 2021 return, I still need to put in all information from box 1 & box 2a (even I already reported in my 2020 tax return) as well as the federal and state withheld, in order to get back or apply the withholdings.  Is this correct?

Thank you so much!

[DanaB27 · Accepted solution]

Yes, you will enter all the information from the 1099-R. TurboTax will ignore the income because of the code P but apply the taxes paid towards any tax due on your 2021 tax return.

[10lamarrj]

Has my 1040-SE for 2021 ben forwarded to the federal government?

[VolvoGirl]

You mean the 1040-SR?

Did you go all the way through the File tab, through the 3 steps and hit the big orange Transmit Returns Now button?

If you used the Online version you can check your efile status here     

https://turbotax.intuit.com/tax-tools/efile-status-lookup/   

When you efile you get back 2 emails.  The first email only confirms the transmission.  The second email says if the IRS (or state) Accepted or Rejected your efile.  And check your spam folder for them.

When you log into your account you should also see the status and if it was Accepted or Rejected, Started, Printed, Ready to Mail, etc.  What does it say?

[MNYL]

Hi DanaB27,

Regarding this same question I had from 2021, now when I do my 2021 Tax Return on Turbo Tax, it said I may have to amend my 2020 return since my 1099R reports earnings on the contribution.  But I have done what you suggested on last year to create the 2021 1099R and reported in 2020 tax return to avoid amending the 2020 return this year.   So I should not need to amend my 2020 tax return, correct?

Thank you so much!!

[AmyC]

Yes, the point was to add the income to the 2020 return, which you did so there is no need to amend. Great job!

[MNYL]

Thank you AmyC!  I just want to confirm when I checked back my 2020 return,  at the time I did not know the federal and state tax withheld, I couldn't enter these info (even I marked the 1099R was for 2021), I could only enter "gross distribution, taxable amount,  and J & P codes".   Would these be sufficient for 2020 tax return?  I just opened my Turbo Tax 2020 and entered back the Federal and State Withheld (since now I have the 2021 1099R) and didn't see any impact on changing the total federal and state tax I had to pay.   So bottom line is I do not need to amend the 2020 tax return, correct?    I just need to report this 2021 1099R on my 2021 return again, correct?

Many thanks for the assistance!!

[AmyC]

Yes, 2020 is good.  Yes, report the 2021 1099-R. The taxes will be given credit on the 2021 with the 2021 1099-R.