turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

dmertz
Level 15

1099R box 7. Possible wrong code?

Yes, code 8J on a 2022 Form 1099-R means that any amount of gains shown in box 2a are taxable on your 2022 tax return.

1099R box 7. Possible wrong code?

OK, this is where I get lost. And I hope I am not abusing your good advice here.

My box 2A has $0.00 on the 2022 - 1099R. 
I mistakenly deposited 7000 in Jan of 2022, for tax year 2021.
In mid March of 2022, I realized my error and requested a return of the mistaken deposit from 6 weeks earlier for 2021 tax year.
But now I have a 1099-R for 2022 showing a Gross distribution of 6,918 as the cost basis return of the 7000.
And long after I filed for 2021, I got a 1099-R for 2021 for the deposit, which I did not include in the 2021 filing as it came so late and I was under the impression it would be nullified in the final reporting.

And TurboTax is saying I owe 6% of 7000 for an 'additional tax'.

I requested the return of the mistaken deposit prior to the due date of the 2021 tax return. It seems to read that because the excess contribution was requested prior to the return due date for the same tax year, that extra tax should not be occurring.

Should I instead be amending the 2021 return, including the 2021 1099-R deposit and then entering the 2022 10990-R? The 2021 1099-R deposit is not reported anywhere.

What's odd is even though the 7000 does not appear anywhere on my 2021 return, TurboTax is showing 7000 as a 2021 excess contribution.


dmertz
Level 15

1099R box 7. Possible wrong code?

If box 2a shows $0 as taxable and there is no tax withholding, entering a code-8J Form 1099-R into TurboTax only causes TurboTax to prompt for an explanation of the return of contribution.  Since the contribution returned was a 2021 contribution (you'll want to verify that with your IRA custodian or Forms 5498), the explanation is required with your 2021 tax return, not your 2022 tax return.  You must omit this Form 1099-R if it causes TurboTax to include an explanation statement with your 2022 tax return.

1099R box 7. Possible wrong code?

I have to tell you that despite my asking this question of many sources, this is the first answer that made sense to me. This actually gave me some peace of mind on how to proceed.
Thank you.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies