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Excess IRA Contributions

In 2016 I had made excess contributions to my Roth IRA. I removed the excess from my account in 2017 with earnings and added the earnings to my 2016 taxes. When I filed my 2016 taxes, I followed Turbo Tax experts instructions of creating a 1099R with the earnings. I also added a note to my 2016 filing that it included these earnings.  In 2017, I received a 1099R for the earnings that I already included in my 2016 filing. Do I include those earnings again in the 1099R, or do I exclude them from my 2017 tax filing. How do I communicate with the IRS that these earnings have already been filed?

p.s. I submitted the penalty for early withdraw with my 2016 taxes too.

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Accepted Solutions
Employee Tax Expert

Excess IRA Contributions

Your 2017 Form 1099-R should show Code P in Box 7, for "Return of Contribution Taxable in 2016." If so, enter your 1099-R as it appears, and answer that 2017 is the year on the 1099-R. 

You'll see a message "It Looks Like You May Need to Amend Your 2016 Return" but if you've already accounted for the withdrawal on your 2016 return, there will be no further action required.

See the answer below for information on how to account for an overcontribution that you withdrew before the due date of your return.

https://ttlc.intuit.com/replies/4327681

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1 Reply
Employee Tax Expert

Excess IRA Contributions

Your 2017 Form 1099-R should show Code P in Box 7, for "Return of Contribution Taxable in 2016." If so, enter your 1099-R as it appears, and answer that 2017 is the year on the 1099-R. 

You'll see a message "It Looks Like You May Need to Amend Your 2016 Return" but if you've already accounted for the withdrawal on your 2016 return, there will be no further action required.

See the answer below for information on how to account for an overcontribution that you withdrew before the due date of your return.

https://ttlc.intuit.com/replies/4327681

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"