Got a 2018 1099-R with a P1 code that is contributed from an after tax money. How Do I report the majority of the amount is coming from an after tax money

[jayson-antolin]

and I should be amending my 2017 Return, correct?

[dmertz · Accepted solution]

The amount shown in box 2a of this Form 1099-R is includible in income and subject early-distribution penalty on your 2017 tax return.  If any amount is shown in box 4, this Form 1099-R is also reportable on your 2018 tax return because the tax withholding applies to 2018, not to 2017.

[jayson-antolin]

follow up: My 2018 1099-R Box 2a shows zero (0.00) box 4 is blank. Question: 1) Should I report and amend my 2017 return for this? turbotax software says I might need to amend my return (but I just got the form?) 2)Should I report this in my 2018 return? If the Answer is no for both when do I report this? Just confused on the process since I got the form in 2019 for a 2018 contribution related to an after tax money 2017 traditional IRA catch up contribution (hopefully this makes sense) Thank you!!

[dmertz]

Is the IRA/SEP/SIMPLE box on this Form 1099-R marked?

[jayson-antolin]

yes. thanks

[dmertz]

OK, this was a return of contribution from your traditional IRA.  Since box 2a shows $0, there is no need to amend your 2017 tax return as long as there was no deduction for this contribution on 2017 Form 1040 line 32 or 2017 Form 1040A line 17 and no nondeductible contribution reported on 2017 Form 8606 line 1 of your originally filed tax return.

[jayson-antolin]

Ok thanks! 1040 line 32 is definitely zero but A few more follow ups I got form 5498 in 2017 for my contribution but I didnt file form 8606. Should I then amend 2017 return for this? And do I need report  the 1099-R in my 2018 Tax return? Thank you!

[jayson-antolin]

I meant the 2018 1099-R for the return of my/this contribution

[dmertz]

If the entire contribution was returned (with perhaps a smaller amount distributed due to investment loss), there is nothing to report on Form 8606 line 1.  The return of contribution counteracts the amount reported as the contribution on the 2017 Form 5498.

[jayson-antolin]

Thank you! yes, the 2017 5498 show 5,500 and the 2018 1099-R show 5,500.70 to be exact. Looks like nothing needs to be done on both my 2017 and 2018 tax returns then. Thank you so much!!

[dmertz]

The $0.70 should have been box 2a of the code P1 2018 Form 1099-R.  I wouldn't worry about that, though, since, when rounded to $1, it's unlikely to affect your 2017 income tax liability.  It's an error too small for the IRS to care about.

[kparekh]

Hello,

I am asking a related question on receiving 2019 Form 1099-R since it seems the users here are knowledgeable about this.

I made $5500 excess contribution to my Fidelity IRA account in year 2018. While preparing my 2018 Taxes I got a message from Turbotax about excess contribution and suggested to revert the contribution to avoid taxes/penalties. I called Fidelity immediately and reverted the transaction and got the money out of my IRA account.

I have received a 2019 Form 1099-R with Box1= 6044.04 and Box 2a = 544.04 and Box 7(Distribution Code) = P1, IRA/SEP/SIMPLE is marked 'X'

I auto-downloaded all Fidelity Tax statements into Turborax while preparing the 2019 Taxes and got a message that I will need to amend my 2018 tax returns because of 1099-R form. Since I have e-filed my 2019 taxes already I cannot go back to find the message or instructions Turbotax may have given.

I found a 1099-R related letter from Fidelity after reversal of funds that says the transaction will be reported to IRS and I will be required to file IRS Form 5329 with my tax return. I rechecked my filed 2019 Tax Returns and found that no Form 5329 filed by Turbotax.

Please guide me what do I have to do - File 2018 Amend Tax Return with 2019 Form 1099-R/explanation OR File 2019 Amend Tax Return with Form 5329/2019 Form1099-R? I will truly appreciate your guidance here.

Thanks,

KParekh.

[dmertz]

KParekh, please do not post the same question in multiple places.  Your question was addressed here:

https://ttlc.intuit.com/community/retirement/discussion/re-does-your-1099-code-p-show-a-small-taxabl...