how to amend a previous year's tax return for excess traditional ira contribution

[Sam164]

I made an excess contribution in 2022 to my traditional ira. In 2023 I took a distribution of the excess amount. I have filed my 2023 tax return and included the information from the form 1099R on it. TurboTax is saying I need to amend my 2022 tax return.  But what do I need to amend in my 2022 tax return and how do I do it?

[DanaB27 · Accepted solution]

You will enter the Form 1099-R on your 2022 return:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Enter your Form 1099-R
5. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
6. Click "Continue" after all 1099-R are entered and answer all the questions.
7. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings from box 2a under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2021" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.

Only the earnings in box 2a will be taxable.

Please see How do I amend my federal tax return for a prior year?

[Sam164]

Thank you for your answer, I have started to amend my 2022 tax return using my 2023 1099-R.  But another question has come up in the process.  After I entered in the information from my 1099-R and TurboTax did its smart check, it is asking me to fill in some other fields, one of which is asking me to specify the unrecovered contribution.  What is the unrecovered contribution referring to?  In 2023 I just withdrew an excess 2022 contribution.

[DanaB27]

To clarify, is this for the NJ state return? If yes then go back to the state interview. 

You will need to report the earnings on line 20a of Form NJ-1040. To do this TurboTax is using New Jersey IRA Worksheet (which will not be include with your NJ return). You will need to enter the excess contribution amount in the contribution amount previously taxed during the NJ state return:

1. On the “You've Finished Your New Jersey Return” click “Update” next to “Adjustments”
2. Continue until you get “IRA Information” screen.
3. Select “Yes, this was the first year of withdrawal from this IRA” enter the excess contribution for 2023 next to “Total of IRA contribution previously taxed”

[Sam164]

No, this was still for the federal tax return.  I just got this question about the unrecovered contribution when TurboTax ran its smart check.

[DanaB27]

Usually this comes up for the NJ smart check.

Your unrecovered contributions should be the total contributions to the IRA including excess contribution amount.

[Sam164]

Ok, thank you.  One more question.  My 2022 tax return was e-filed.  I am getting a message in TurboTax that says to not file returns by mail that have already been transmitted electronically.  Should I just disregard that message and mail both the federal and state tax returns (I am in NJ).

[MarilynG1]

You can attempt to submit your Amended returns by Efile, and you may be successful.

Some amended returns are not able to be Efiled, however, and must be mailed.

Here's more info on Can I Efile My Amended Return?

@Sam164 

[Sam164]

Thank you!