SEP Excess Contribution

[wchengkanhi]

How do I report on Turbo Tax for an excess SEP contribution for year 2020?  Deposit was made on 4/12/2021 and error correction was made on 4/20/2021. Tax has not filed yet for Year 2020 on Turbo Tax.   How do I handle it on TurboTax?

[ThomasM125]

To report the earnings on the excess contribution, you should enter a Substitute form 1099-R and enter it on your 2020 tax return. You will see an option for this when you see the screen Tell us Which 1099-R You Have. 

Enter in box 1 the distribution amount. In box 2 enter the earnings. Enter code "P" in box 7. Work through the questions in TurboTax after you entered the 1099-R until you see a question regarding why you made the distribution, to which you will respond it was a return of an excess contribution.