I made an excess 401k deferral in 2019. I did not report anything on my 2019 return at the time of filing, but I did get a check for the corrective distribution in March of 2020. My intention was to amend my 2019 tax return once I got the 1099-R forms.
I received two 1099-Rs in 2021, one with Code P (Gross Distribution via box 1: $307) and one with Code 8 (Gross Distribution via box 1: $22.50) . I reported both of these on my 2020 return (filed earlier this year).
My question is this: for my amended 2019 return, should I only be reporting the wages on the 1099-R with the Code P? What are the instructions for how to do this via the online 2019 TurboTax portal?
A 2020 code P 1099 cannot be reported on a 2020 tax return- it can only be entered on an amended 2019 tax return. If you enter it into the 2020 software TurboTax will tell you that you need to amend 2019 (one exception - if there was any box 4 withholding then the 1099-R must be entered in both 2020 and an amended 2019 tax return because withholding only applies to the year withheld, but the excess applies to the year of the excess.)
The 2020 1099-R with code 8 must be entered in the 2020 tax return.
Confusing - yes - code P is the excess taxable in the year of the excess (2019). Code 8 is any earnings taxable in the year returned (2020).
Thank you. I will add the 1099-R with Code P as an amendment to my 2019 return.
Should I add it is additional income? Or should I add it as a new 1099-R? I am not really sure the correct way to add it as an amendment. Thanks in advance!
Simply enter the 2020 1099-R into the 2019 amend software. The code P will ask of this is a 2019 or 2020 1099-R - say 2020 and the box 1 amount will be added to the 2019 1040 line 1 just like wages.
Enter a 1099-R here:
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
2019 and earlier can only be amended with TurboTax using the CD/download version installed on a PC or Mac computer.
See this TurboTax FAQ for detailed amend instructions: