Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 1:12:52 PM

Where do I report a loss on an excess deferral to 401(k) ?

Turbotax identified that I contributed an excess of $910 to my 401(k) in 2018. I requested the excess to be returned from my plan administrator and was given $839.17 due to a loss of $70.39 on the investment. I was able to follow the instructions for reporting the net gain of $839.17 as additional income, however, I cannot figure out where to report the loss of $70.39. The only instruction I can find, state to report it as a negative number on line 21 of form 1040 with the description of "Loss on Excess Deferral" but in Turbotax I don't see a way to get to line 21. What steps in Turbotax do I use to report this loss? Thank you in advance for your time, energy, and effort to answer this question.

0 5 1171
5 Replies
Level 15
Jun 3, 2019 1:12:53 PM

Try Income -> Less Common Income -> Miscellaneous Income -> Other Reportable income -> Yes -> Enter description and loss as a negative number.

That should put it on Schedule 1 with the description and the loss.

You can also enter "Other Reportable income" in the search topis box.

Returning Member
Apr 21, 2020 9:41:21 AM

When I enter negative amount as described above, Turbotax is not allowing me to eFile my Federal tax returns. It says I need to fix the return and 'Wages, Salaries & Tips worksheet: TP other earned inc shouldn't be less than zero." Please help!!

Level 15
Apr 21, 2020 10:04:53 AM

Does smart error check find that.   When I try it I do not get any errors.

Returning Member
Apr 21, 2020 11:11:31 AM

Yes

Level 15
Apr 21, 2020 12:19:57 PM

All I can suggest is delete and re-enter.  Be sure that there are no other errors in smart check.

 

It might be only a problem in the online version (I am using desktop).   This should be allowed since it is what the IRS says to do.

 

You can call customer support, but I doubt that they will be able to do anything.