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.
Try Income -> Less Common Income -> Miscellaneous Income -> Other Reportable income -> Yes -> Enter description and loss as a negative number.
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!!
Does smart error check find that. When I try it I do not get any errors.
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.