How to manually file return of excess when 1099-R doesn’t report it

[chanflorence2]

I accidentally contributed to a Roth in Robinhood and then took it back almost immediately - within the same hour. Robinhood support is saying that they cannot change the 1099-R to show a return of excess but that TurboTax can reconcile this in the tax forms. How do I do that? Am I allowed to just change the code in box 7 and claim return of excess even if the Robinhood 1099-R doesn’t match? Source: https://robinhood.com/us/en/support/articles/ira-adjustments/

[dmertz · Accepted solution]

The ordinary distribution that you received generally does not undo a contribution.  A return of contribution before the due date of your tax return is a specially requested transaction that requires the amount distributed to be adjusted for any investment gain or loss.

Given that the ordinary distribution occurred within an hour of the contribution, it seems likely that there was no investment gain or loss.  In that case you could potentially replace the Form 1099-R that you received by filing a substitute Form 1099-R (Form 4852) indicating codes J and 8 in place of the code J, T or Q in box 7, changing the amount in box 2a to zero and unmarking box 2b Taxable amount not determined, and providing the explanation statement that will prompt you to enter.  Filing For 4852 will require that you print and mail your tax return.