How do i report refund of excess contribution to traditional IRA? This contribution was post taxes

[ThomasM125]

If you received the distribution after the end of the tax year,  you need to enter a substitute Form 1099-R to report the distribution. Otherwise, enter the Form 1099-R you received for the current year.

To enter a substitute form 1099-R in Turbo Tax Desktop follow these instructions:

1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
3. Choose Add (Another) 1099-R
4. Choose I'll type it in myself
5. On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R

To enter a substitute form 1099-R in Turbo Tax Online follow these instructions:

1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
3. Choose Add (Another) 1099-R
4. Choose I'll type it in myself
5. Choose the source of your 1099-R form
6. Enter your pension distribution into the Form 1099-R entry screens

When you come to the screen that says Do any of these situations apply to you? Check the box that says I need to file a substitute 1099-R and follow the instructions

This is what you enter for the substitute Form 1099-R:

1. Enter the distribution amount in box 1 of the substitute 1099-R
2. Enter the taxable amount in box 2(a)
3. Enter code "P" in box 7 (And code "J" if from ROTH IRA)
4. Choose the year that will be printed on the 1099-R when asked

[agarwallalit82]

Thanks Thomas. This is for a prior year; post tax contribution was made in Dec 2024 and withdrawn in Jan 2025. I have now received the 1099R with Code P - Do I amend the 2024 tax filing or do what you have suggested for the latest tax filing?

[DanaB27 · Accepted solution]

Yes, if you didn't report the earnings from box 2a on your 2024 return then you will need to amend your 2024 return to add this 2025 Form 1099-R with code P. Please see How do I amend my federal tax return for a prior year?

You do not need to enter the 2025 Form 1099-R with code P on your 2025 return unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2025 Form 1099-R into the 2025 tax return since the withholdings are reported in the year that the tax was withheld. The 2025 code P will not add anything to your income in the 2025 tax return but the withholdings will be applied to 2025.
 

[agarwallalit82]

Thank you. This is very helpful