Accidentally deposited to my IRA instead of my brokerage account. I had Etrade transfer the deposit to brokerage the next day. I have a 1099 now with a distribution. Will I have to pay tax on this error? Or how to show it on my return? Thank you!

[cab1221]

I accidentally deposited to my IRA instead of my brokerage account in 2021. I had Etrade transfer the deposit to my brokerage account the next day. I have a 1099 now with that amount as a distribution. Will I have to pay tax on this error? Or how to show it on my return? Etrade said I should not have to pay tax since it is was a correction but of course I am nervous. Thanks so much for the advice/help.

[cab1221]

Also I should have included: the 1099 shows the distribution as code 8, Excess. Thanks

[fanfare]

@cab1221 

As long as this 2021 1099-R shows no taxable amount, after entering1099-R, follow up with "excess removed before filing date of tax return".

It should end up as  no effect on your taxes.