I'm 76, and not knowing it was't allowed I contributed to my traditional IRA, once at the end of 2016 and once beginning of 2017. The previously taxed contribution money was withdrawn early 2017, but the contribution(s) are increasing my total income and taxes. How do I correct this problem ?
My one 1099R has box 7=P, and the other has box 7=8. I can understand paying tax on the small dividends made on the contributions, but should the contribution be added to my total income when the contribution money was already previously taxed ?
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No, you should pay tax only on the earnings.
The codes let TurboTax know how to treat the distribution. You may need to know the amount of the earnings if the taxable amount in box 2a is not correct or the box is checked "Taxable amount not determined".
The interest on the 2016 contribution/withdrawal should have been reported on your 2016 return (code P) and the interest on the 2017 contribution/withdrawal is reported on the 2017 tax return. For 2016, this will require an amended return if you didn't report the interest on your 2016 tax return.
Check your entries for the box 2 amount for both Forms 1099R to be sure you have the correct amounts listed.
No, you should pay tax only on the earnings.
The codes let TurboTax know how to treat the distribution. You may need to know the amount of the earnings if the taxable amount in box 2a is not correct or the box is checked "Taxable amount not determined".
The interest on the 2016 contribution/withdrawal should have been reported on your 2016 return (code P) and the interest on the 2017 contribution/withdrawal is reported on the 2017 tax return. For 2016, this will require an amended return if you didn't report the interest on your 2016 tax return.
Check your entries for the box 2 amount for both Forms 1099R to be sure you have the correct amounts listed.
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