Help with 1099-R on excess contributions

Forum|Forum|3 years ago
February 18, 2023
3 replies
23 views

I recieved 2 1099-R forms this year: one from excess 2021 Roth IRA contributions that were removed Feb 2022 prior to filing 2021 taxes, and another for 2022 excess Roth IRA contributions removed earlier this year. My understanding is that i need to report the earnings from the contributions as income as well as pay the 10% tax for early withdrawal. If I report both 1099Rs on 2022's taxes does this take care of all I need to do?

DanaB27

Employee Tax Expert

No, the Form 1099-R for the 2021 excess needs to be reported on the 2021 tax return and should have codes P and J in box 7. Please see How to amend a tax return for instructions.

The Form 1099-R for the 2022 excess needs to be reported on the 2022 tax return and should have codes 8 and J in box 7.

Yes, only the earnings will be taxable and subject to the 10% early withdrawal penalty if you are under 59 1/2 (if you are over 59 1/2 enter the earnings under "Another reason" on the "Did you use your IRA to pay for any of these expenses?" screen to get exempt from the 10% penalty).

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

jswenso3Author

Level 2

Thanks for the clarification. Is there a way to file an amended return with Turbotax if I used an outside source to prepare my taxes originally?

PattiF

Level 15

Yes, there is a way to file an amended return with TurboTax if you did not prepare your original return using TurboTax. You will have to recreate the original return as it was first filed. To trigger an amended return, you will have to choose to file by mail for the initial return. Then choose to amend the first one to enter the new information.

This will be time-consuming and it might be easier to use the original preparer if possible.

@jswenso3

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