1099r distribution code p - do I amend?

[medtekn]

In 2016, prior company took too much 401K out (over limit).  They mailed me a check in 2017 and sent me 1099 R with distribution P ticked.  I filed 2017 using this but noticed turbo tax did not add this amount to my income?  Do I need to amend to do this?

[fanfare]

yes. P is for prior year, so that's why no effect on your current return.

[DianeW]

Yes, the interest earned is taxable on the 2016 tax return.  If you did not previously include this interest on your 2016 return, then you need to amend your 2016 return to include this additional interest income. The Form 1099R is not entered in the 2016 tax return.

Form 1099R, for 2017 was previously included on your 2016 tax return because of the code "P".  Do NOT amend your 2017 return because it will not make a difference.

The instruction to amend your return for 2016 is included below.  Be sure to read all the information carefully before you begin so that all of your original figures remain in place for the amendment. Don't forget about your state return.

https://ttlc.intuit.com/replies/3288565

[fluxquantum94]

Hello, to whom it may concern. I am dealing with a similar scenario but not sure how I am supposed to amend my return. When filing my 2020 taxes last year, I had to request an extension, file my federal tax up front (made estimated tax payment based on my excess contribution) and then had my brokerage account withdraw my excess contributions to my ROTH IRA account.

This resulted in a 1099-R to be created at the start of this year 2022 for tax year 2021.

As I am going through the tax software this year, after importing my 2021 tax year 1099-R, I am being told I need to amend my 2020 return, but I can't where to do this because I don't have a 1099-R for 2020 and I don't have a 1099-INT either. Where am I supposed to populate this in my 2020 amended return?

Thank you for your time.

[dmertz]

A 2021 Form 1099-R that includes code P (along with code J for a Roth IRA) in box 7 must be reported on your 2020 tax return if the form has a nonzero amount in box 2a.  When entering this form into 2020 TurboTax, TurboTax will ask if the form is a 2020 or a 2021 form.  Answering that it is a 2021 form will cause TurboTax to include the amount from box 2a as taxable income on Form 1040 line 4b and on Form 5329 line 1 as an early distribution.

If this form has a zero in box 2a or the box is blank, there is no need to amend your 2020 tax return to include this income.

[fluxquantum94]

Hello, really appreciate you following up and providing those details. Does this mean I need to create and report my own 1099-R even though I never received one from my brokerage account directly?

[dmertz]

You'll need to enter the 2021 Form 1099-R into 2020 TurboTax manually.  Just copy the details form the one that was imported into 2021 TurboTax or go online with the IRA custodian and download the form from them.