What if I don't receive 1099-R in time to file taxes after withdrawing excess Roth IRA contribution ?

[dmertz]

"The agent suggested that I do two things instead: 1) Input the distribution and any gains on the 1040 line 4a and 4b, and then 2) attach a letter explaining my situation (made excess contribution but removed excess by tax filing due date)"

You accomplish that in TurboTax by entering the contribution under Deductions & Credits, indicating the amount of contribution you requested to be returned, then under Wages & Income entering a 2023 Form 1099-R the same as the one you will receive in January 2024 to show the adjusted amount distributed and any taxable gains.  TurboTax will ask you to provide the explanation of the return of contribution.

[Firstpoint]

Thank you, and by "include the data in the tax return in the current year with a Code 8" you mean create a dummy 1099-R within Turbo Tax? 

[Firstpoint]

@AbrahamT 

To be clear, I will be creating a 1099-R for my 2022 return with codes 8 and J, and NOT with code P as suggested earlier in this thread. Then next year, when I receive the 1099 with code P, I can ignore it. 

Also, there is box 3 for "capital gain." Do I leave this blank as suggested earlier in the thread? Or should I put in my gain (in my case it is actually a loss). 

[dmertz]

The real Form 1099-R will be a 2023 Form 1099-R with codes J an P and is the proper way to prepare the dummy 1099-R entry in TurboTax.  This has the same effect as a 2022 Form 1099-R with codes 8 and J except in the application of any tax withholding.  When you enter a Form 1099-R that has code P, TurboTax asks you to provide the year of the form, so you'll answer that it's a 2023 Form 1099-R.  Your "dummy" Form 1099-R should be identical to the actual Form 1099-R (to the extent possible), simply entered before you receive it.

Box 3 does not apply to any distribution from any kind of IRA.  Leave it blank.

[Firstpoint]

@dmertz Thanks for clarifying. This information conflicts with the information provided by @AbrahamT , (included below).

"""""""If you know you’ll be receiving a Form 1099-R next year with a Code P and want to avoid the need to amend a return, include the data in the tax return in the current year with a Code 8. You can then ignore the Form 1099-R with the Code P when you receive it a year later. (Code 8 indicates that the amount is taxable in the tax return you are currently working on, and Code P indicates the amount is taxable in the prior tax year.) See here

pg. 15, 16 and 17 for a guide of the codes. particlarly pg. 15 and 17 for code 8 and P."""""

Am I missing something? You advice is to put codes J and P. 

[dmertz]

As I said, the result will be the same as long as there is no tax withholding, but entering a code-P 2023 Form 1099-R will be replicating what you will actually be receiving in January 2024.  However, entering a code-8 2022 Form 1099-R avoids the need for TurboTax to ask for the year of the Form 1099-R, so it's probably less prone to user entry error.