Your earnings must be reported as taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return. You will need to amend your 2022 return to report the earnings. Here is how to report.
To amend your return using Turbo Tax Online.
- Log into Turbo Tax
- Select Scroll down Your tax returns & documents in your landing page.
- Select Amend (change) 2022 return.
To amend using the 2022 Desktop Software, go to:
- Federal Taxes
- Other Tax Situations>other tax forms
- Amend a return
Now you need to create a substitute 1099R.
- Go to Federal
- Wages and Income
- Retirement Plans and Social Security
- IRA's, 401K etc.
- In the Box that asks what type of 1099 R, check the first Box. In the same screen, check the box indicating you need to prepare a substitute 1099R.
- Now fill in the 1099R information. You will need to get the payer's information so you will need to get the payer's name address EIN to fill in as much information as possible.
- In the Gross Distribution Amount, put in the full amount of the contribution
- In the taxable amount, put in the earnings because these are taxable even though withdrawn.
- For the codes reported in Box 7, use J in the first Box and P in the second.
- Complete the rest of the interview.
You will receive a 1099R for this event next year but you do not need to report this since you are reporting this for year 2023.
[Edited 04/09/24|7:54 pm PST]
@katsbirds
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