TurboTax error message preventing E-filing

Forum|Forum|4 years ago
February 2, 2022
1 reply
3 views

I'm a retired CPA who's having a problem completing my 2021 federal return. My wife received a distribution in 2021 for her IRA contribution for 2020 that we had to withdraw and which was reported in 2020. The correct distribution code per IRS instructions is "P." How can this be fixed?

ThomasM125

Level 15

I think you mean you made an excess contribution in 2020 but withdrew it in 2021, so your 2020 tax return is properly stated. Now in 2021, your received a form1099-R reporting the distribution and you think it is coded wrong in box 7. You think the code should be "P" (excess contributions/earnings taxable in 2020), but it is something else. I would be inclined to agree with you.

If you can tell us what code is on the form, we may be able to help you further.

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jwhartAuthor

Level 2

Actually the contribution for 2020 was made in February and withdrawal was in April, both in 2021. Since I hadn't filed my 2020 return, I was able to report it correctly on my 2020 return. What was reported in 2021 includes BOTH this withdrawal and the required minimum distribution for 2021. The distribution code in box 7 is "7." Thank you for your reponse.

FangxiaL

Level 10

I need more information to answer your question.

Please clarify:

Is it a contribution to your wife's Traditional IRA account?
Did either you or your wife have earned income for 2020?
When you said that you had to withdraw, what did you mean, financial reason or she had to take RMD?
When you filed your 2020 tax return, how did you report the contribution and distribution?

@jwhart

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