Reporting 1099-R IRA

[sasho1987]

While doing my 2022 taxes, I realized that our MAGI exceeded the allowed limits to contribute to a Roth IRA in 2022. My wife and I both contributed the maximum amount in 2022.

1- I requested that my financial institution remove the 2022 deferrals before the April 15th due date which has been completed.

2- I contacted my financial institution to get the total distribution and the earnings so I can fill out a 1099-R on my 2022 tax forms.

3- To avoid amending my 2022 tax returns next year, I am filling out two (2) 1099-R forms on my 2022 tax returns ( one for me and one for my wife), but I have a few turbo tax questions:

• Turbo tax is asking me for 1099-R provider information. Since I do not have a 1099-R form (won't be sent until next year), do I just get this information from my financial institution?

• I am entering total distributions (contribution + earnings) in Box 1, Is this correct?
• I am entering earnings in box 2a, Is this correct? What happens if total contribution is for example $6000 but earnings in -200$ (negative earnings)?
• In box 7 I will enter J and P , is this correct?
• No other boxes filled/checked, is this correct? (I have no state taxes)
• In the section, "did you use your IRA to pay for any of these expenses:"
  • Which one should I choose?
  • What number should I enter there? distribution? earnings?
  • What if earnings is negative?
• in the section of "Explain the return of contributions"?
  • What would be the description?
• 

[DanaB27]

Yes, you can ask your financial institution for the information (address and Payer's TIN).

Yes, the total distribution is entered in box 1. If you had a loss enter $0 in box 2a.

Yes, box 7 will be J and P.

Yes, no other boxes will be filled out.

If you are over 59 1/2 you will enter the amount from box 2a under "Another reason" ($0 in your case since you had a loss so you don't need to enter anything if you didn't have earnings).

For the explanation: Return of excess contribution for 2022 of $xxxx (contribution amount) with a loss of $xxx (or if you had earnings "with earnings of $xxx")

To create a Form 1099-R in your 2022 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2022?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning or contribution minus loss)
7. Box 2a enter the earnings (or $0 for loss)
8. Box 7 enter J and P
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
11. Click "Continue" after all 1099-R are entered and answer all the questions.
12. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Another reason" if you are over 59 1/2 (if you are under 59 1/2 click "Continue")

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2021" you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.