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No, you will probably not pay any taxes since you withdrew your excess Roth IRA contribution before the tax-filing deadline (there should be no 10% early withdrawal penalty nor any 6% excise tax on the over-contribution).
You already paid taxes on the money you contributed to the Roth IRA; so taking that amount back out is tax-free.
However, if the account earned a few cents or dollars (e.g., in a sweep/money market fund), than any earnings distributed with the excess are taxable as ordinary income.
Code P on your 1099-R Identifies the distribution as a "Return of excess contributions taxable in the prior year."
Code J identifies an "Early distribution from a Roth IRA." (when paired with P, it just lets you & the IRS know that it was a Roth account).
Enter the 1099-R exactly as it appears; be sure to enter both P and J in Box 7.
Make sure Box 2a matches your form; if it is $0, no income will be added to your return.
If this was on a 1099-R for 2025 with PJ in box 7, would an amended return still need to be filed for 2024 even though no additional taxes are owed from this 1099-R related to 2024? The funds were contributed to a Roth-IRA so the contributions have already been taxed.
For me the funds were invested but withdrawn March 2025 so before the filing deadline. My withdrawn funds resulted in a loss. Original contribution was $7,000 and gross distribution in box 1 is $6,675.84. I have a PJ in box 7 and no information in any other box besides a $0.00 in box 2a.
Thank you for your help!
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