Do I have excess Roth IRA contributions for prior years if I already put in my 1099-R information?

[ThomasM125]

I think what you mean is that you had excess Roth IRA contributions in a prior year and you corrected that by taking a distribution that was reported in the current year on a Form 1099-R. You then entered the form in TurboTax so now you want to know if you still have excess IRA contributions. The answer than would be no, you no longer have excess contributions.

Under that scenario, you would have had excess contributions in prior years, which you should have reported in those years and paid the penalty when you filed the prior year tax returns.

If you had an excess contribution in 2023 and you corrected that by the due date of that tax return in 2024, then you wouldn't have been penalized for the excess contribution in 2023 and you wouldn't have been considered to have an excess contribution for that year, since you corrected it by the due date of the tax return.

[kevboruff]

thank you! It keeps asking me if I entered my numbers correctly for the Form 1099-R. My gross distribution was $2,861.53. But my taxable amount was only $461.53. Does that sound correct? We caught the excess contribution early and I think that's why the taxable amount was so low. (because the extra $2400 in contributions had very little time to earn interest this passed year (2024).

[ThomasM125]

Yes, that sounds correct. The taxable amount would just be the income earned on the excess contribution. This looks normal!

[kevboruff]

could someone help me with my return? It's asking me this: Is this activity a qualified trade or business under Section 199A? 

I have no clue and I think some information is put in wrong. My wife got a 1099-NEC for work she did. And it's asking questions regarding this that I'm not accustomed to. I don't know what I did wrong.

Is there a way someone could help me?

[ThomasM125]

Since your wife received a Form 1099-NEC for work she did, she may be considered to be running a business by the IRS. This is generally true if she performs services similar to her normal salary work or self-employment work, has done similar work in previous or likely in future years and has a profit motive for the services performed. If so, then the income will likely fall under Section 199A and as such be a qualified trade or business for such purposes. So, she may qualify for a Qualified Business Income (QBI) deduction. 

You can learn more about QBI in this article from Intuit.