How to file a 1099R-2021 in 2021 return instead amend 2020 return due to excess Roth IRA contribute in 2020, excess amt received in Feb 2021. TurboTx disallow w "JP" code

[jolimeng]

Just to know if there's other option other than amend 2020 return per TurboTax.

[MaryK4]

No, unfortunately, you will have to amend your 2020 tax return because you must provide an explanation for the removal of the excess contribution in 2021. 

On your 2020 amended return, Turbo Tax will ask you to "Explain the Return of Contribution" and create that statement for you when you enter the 1099-R. TurboTax will create Form 5329 for you as well.

[jolimeng]

Thank you MaryK1101!!

The returned amount happened in 2021 (direct deposit), why can't it be considered as a 2021 income and file in 2021 return?  With the "P" code on the 1099-R (2021), TurboTax is not allowing not recognize this 1099-R for 2021 return, and suggest to amend my 2020 return which I hope not to go with this option.

If this is the only option I have is to amend 2020 return, do I need to complete my 2021 return before I begin 2020 amend in TurboTax?  I hope it's not complicated, never done an amendment before.

[fanfare]

you need to amend 2020 if the taxable amount 2a is positive because it is income taxable in 2020.

You have to use 2020 TurboTax software or other means to amend a 2020 tax return.

This assumes you did not think ahead and report that taxable amount on your 2020 return when you filed it.

[dwc29]

Hello,

Trying to enter the 1099-R (2021) into TurboTax 2021 just says I need to file an amended return for 2020, but TurboTax 2020 doesn't seem to understand the 1099-R once I enter the distribution codes.  It completely ignores the taxable amount.

I have a taxable amount listed from the Roth distribution due to excessive contribution, so how do I amend my 2020 tax form to reflect the taxable income listed on the 1099-R?

If I try to enter the 1099-R in the 2020 TurboTax, it doesn't work.  It looks correct until I enter in the code J and P.

The P of course is incorrect because in 2020  it points to 2019.

So how do I amend my 2020, the taxable amount should be for 2020, but I can't figure how to make TurboTax understand.

[DanaB27]

To clarify, did you have earnings listed in box 2a? Only the earnings will be taxable when you withdraw a excess contribution plus earnings. These earnings will be also subject to the 10% early withdrawal penalty if you are under 59 1/2.

Yes, code P is correct. Please be aware, that code P will say in the drop-down menu "Return of contribution taxable in 2019" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2020.

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Enter your Form 1099-R as shown 
4. Click "Continue"
5. On the "Which year on Form 1099-R" screen say that this is a 2021 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 under "Another reason" if you are over 59 1/2 (if you are under 59 1/2 click "Continue")

@dwc29