I had excess IRA contribution of $6000 and it made $248.95 profit. Do I enter $6248.95 as my total 2024 IRA contributions? Thank you

[mikeoneil100]

I had excess IRA contribution of $6000 and it made $248.95 profit. Do I enter $6248.95 as my total 2024 IRA contributions? Thank you

[dmertz]

You contributed $6,000, not $6,248.95.

If you obtained a return of of this entire contribution before the due date of your tax return, you obtained a return of $6,000, not $6,248.95.  $6,248.95 would be the gain-adjusted amount distributed, not the amount of contribution returned.

[mikeoneil100]

Hi, Yes - $6248.95 is the gain-adjusted amount distributed.  Problem is how do I enter the income earned - $248.95 on turbo tax as income without a 1099-R?  1099-R will not come until 2026 tax time.  Turbo Tax has no way of entering it easily.  I can make my own 1099-R so it gets entered and mail in the returns with an explanation.  I wanted to electronic file but my have to settle on electronic filing.  Thoughts? 

[mikeoneil100]

*not electronic filing but mail file.

[dmertz]

If the 2025 Form 1099-R will include code P in box 7, just enter the Form 1099-R into TurboTax as if you have already received it.  There should have been no tax withholding on this distribution, so the details of the Form 1099-R are not includible with your tax return.  TurboTax will already have asked for your explanation and that will be included with your e-filing.

[mikeoneil100]

Result:  Filed  substituted1099-R for excess IRA contribution plus income earned to get the income entered into the 1040 form.  Turbo Tax then has you explain how you reached the income earned and tax numbers, and explain why a substituted 1099-R.  These explanations are attached with the electronic filing.