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Level 2
posted Apr 17, 2023 10:10:28 PM

My 1099-R is incorrect, should I file with the mistake and amend later?

I withdrew from a rollover IRA last year and returned some of the money within 60 days, but it wasn't coded correctly and shows as a new contribution.  I spoke with them and they will correct the transaction.  But given the tax filing deadline is imminent, should I (A) file with mistaken amount and amend it later, or (B) edit the 1099-R in TurboTax to reflect the correct amount?

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1 Best answer
Expert Alumni
Apr 18, 2023 5:40:40 AM

Are you referring to the code in box 7? What is the code in box 7? 

 

If the code in box 7 doesn't show a direct rollover then you can indicate a rollover in the follow-up question:

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account)"
  7. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount rolled over to another (or back to the same) retirement account"

 

 If you need to file an extension then please see How do I file an IRS tax extension? Please remember an extension does not give you extra time to pay your taxes, which are due on April 18.

4 Replies
Expert Alumni
Apr 18, 2023 5:40:40 AM

Are you referring to the code in box 7? What is the code in box 7? 

 

If the code in box 7 doesn't show a direct rollover then you can indicate a rollover in the follow-up question:

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account)"
  7. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount rolled over to another (or back to the same) retirement account"

 

 If you need to file an extension then please see How do I file an IRS tax extension? Please remember an extension does not give you extra time to pay your taxes, which are due on April 18.

Level 15
Apr 18, 2023 8:46:39 AM

It's extremely unlikely that the Form 1099-R is incorrect.  The form is required to report all of the money you took out, even if you put some back within 60 days.  Putting it back is called a rollover and is to be reported as described by DanaB27.

Level 2
Apr 18, 2023 10:57:46 AM

The "code" I'm referring to is that of the transaction where I put some money back into the IRA, not the 1099-R code in box 7.  As I understand it, currently the money returned is marked as a contribution to the IRA, which I'm not eligible to make since I had no earned income in 2022.  The mistake I'm referring to is not the box 7 code but that, in my thinking, the total withdrawal amount shown in box 1 Gross Distribution or 2a Taxable amount should be less considering I put some back.

Level 15
Apr 18, 2023 11:04:23 AM

"the total withdrawal amount shown in box 1 Gross Distribution or 2a Taxable amount should be less considering I put some back."

 

No, the Form 1099-R is correct.  I explained this in my reply, so I will not repeat it.  A rollover is not a regular contribution and is entered nowhere under Deductions & Credits.