I forgot to add 1099-R for excess contribution to my roth IRA of $51 with taxable amount on blk2a $1.86. How do I correct my tax return?

[ace-T]

I just e-filed my 2021 tax return and realized that i did not include my 1099-R for excess contribution to my 2021 roth IRA.   How do i correct my tax return to add my 1099-R. The amount on Gross distribution(blk1) is $51 and blk2a is $1.86 taxable amount. Do i need to file an amendment to add this 1099-R?

[DanaB27 · Accepted solution]

No, most likely you do not need to file an amended return since this is a return of excess contribution only the earnings will be taxable income and subject to the 10% early withdrawal penalty if you are under 59 ½. Your earnings are only $1.86, so the penalty is only $0.19 (will be rounded to $0) and since the tax table adjusts the tax in steps the additional $1.86 might not increase your taxable income to increase your tax.

If you want to verify that your tax doesn’t increase then you can complete Form 1040-X once it is available. Please see How to amend a tax return for instructions (this will be updated once the 2021 Form 1040-X is ready). Please do not send the amendment until your original return has been processed.

To verify your 1099-R has codes J and 8? Please be aware if it has code P then it belongs on your 2020 tax return.

[ace-T]

Thank you.  I just found out that i used 2020 W2 for 2021 return.  Would there be any penalty if I file 1040x before April 18 2022 deadline?

[DanaB27]

No, as long as you file your amended return before the due date then there won’t be any penalty.

Please wait until your refund or payment is processed. Please be aware that you can e-file your 2021 amended federal tax return, but most states require amendments to be printed and filed by mail. Please see How to amend a tax return for instructions (this will be updated once the 2021 Form 1040-X is ready).