Issue with Fidelity 1099 tax form being rejected by state

[pcpatter]

I removed a 2019 overcontribution to roth in 2019. unfortunately fidelity did not pay me the money until 2020 so the form they have provided has 2020 for the year with P & J in Box 7 to indicate this is a 2019 event. When i used it to file an amended 2019 return, the state rejected it stating that the date on the form needs to state 2019 as they do not accept Box 7 codes. I have talked to 5 different reps through the FTB CA chat and all of them state the same thing, that IRS codes to not apply to state and I need a 1099 form dated 2019.

Fidelity refuses to correct it from 2020 to 2019.

The income was claimed on 2019 and the penalty paid. I am just trying to get my state and federal tax withheld returned to me since I am due a refund for these amounts. Should I just file a 2020 amended return for the state tax withheld even though this was a 2019 event? I cannot get Fidelity to give me the proper form to do this the "right" way.

[TomD8]

The solution might be to prepare a substitute 1099-R on Form 4852 on your amended 2019 return.

To do this in TurboTax, go to the 1099-R section of your 2019 amended return and check "Add another 1099-R."  Then, on the screen headed "Tell Us Which 1099-R You Have", check "I need to prepare a Substitute 1099-R".  Then follow the screen prompts, but change the Box 7 distribution code to "8 - return of contribution taxable in 2019."  The program will prompt you to enter an explanatory note.

Then, submit the amended return with the Substitute 1099-R, not the original.

@DoninGA -- any thoughts?

[fanfare]

@pcpatter 

why do you think you are due a refund??.

The 1099-R regarding excess contribution removed is used to amend and report more income, not less.

Yet you say you already reported the income.

Fidelity gave you a correct 1099-R, but if you already reported the income you ignore that 1099-R.

[pcpatter]

I had state and federal tax withheld from the return of excess. Because I did not have the 1099R as proof of this when I filed in 2019, I received a letter in the mail after filing that I had pay that amount. Fast forward to Jan 2021 when I got the 1099R, I provided this to get the refund (since that withholding amount had now been paid twice) but the form is being rejected because the year is 2020, despite the Box7 code of "P" indicating it is a 2019 taxable event. 

[pcpatter]

This might be the way to go! I checked with the state and they have their own version of this form and said they would accept it. I'm still trying to get fidelity to correct the year on my 1099R but it's been weeks with no resolution so I needed a backup plan. 

[fanfare]

Fidelity is not going to change the 1099-R they gave you.

Backup plan:

[suggestion removed]

[fanfare]

Never mind. too tricky since it shows income as well.

[fanfare]

Code J means income is taxable in 2019, on which you already paid tax.

But if your state does not honor the distribution codes, what good is it?