How to fill in 1099-R data before it is actually sent out

[TaxableTim]

I had excess funds contributed to a Roth IRA for 2023.  Investments were made on 2 separate occasions (Dec 2023 and Feb 2024) for $1500 each.  I had the contributions and earnings reversed before the tax deadline of 2023 and they verbally said the earnings were $200.53.  I am under 59 1/2 years old.

When they transferred me to a trader to complete the transaction, he told me to consult a tax professional for the numbers and they are estimates. He also said he was using code P because it was for a previous year.

I have read on the forums here, that I have 2 options.

1) Generate my own 1099-R in turbo tax before filing.

2) Wait for 1099-R in 2025 and file amended 2023 return.

I would rather generate my own now and get my taxes done, rather than file an amended return.

Couple of questions:

1) If I do decide to wait for 1099-R, will I have to pay a penalty and interest with amended 2023 return if I had earnings from revered Roth transactions?

2) If I decide to make my own 1099-R can I overestimate my earnings by like $50, just to be safe and avoid penalties or interest, possibly amending in future for a small refund?

For example:

Box 1: $1753.53

Box 2a: $253.53

3) Can I claim $253.53 as "Corrective distributions made before the due date of the return" as I go through making my own 1099-R in Turbo Tax?

4) If I do put in the numbers they verbally told me:

Box 1: 1703.53

Box 2: 203.53

and  the 1099-R I receive in 2025 shows more earnings, do I then need to amend my return?  I assume if they earnings are less, I don't need to do anything or can amend to get refund amount.

5) Are there any other boxes I need to check in my generated 1099-R besides, box 1, box 2a, box 7 - Code J,P?  If I get my 1099-R with more boxes checked, I assume they don't effect taxes, right?

Thank you.

[DanaB27 · Accepted solution]

1) No

2)-4) No, if you do not know the earnings it would be be better to wait till you get the Form 1099-R and amend your 2023 return then.

5) No, there aren't any other boxes checked

To create a Form 1099-R in your 2023 return please follow the steps below:

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. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2a enter the earnings
8. Box 7 enter J and P
9. Click "Continue"
10. On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
11. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
12. Click "Continue" after all 1099-R are entered and answer all the questions.
13. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings 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 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.