SEP Excess Contribution

wchengkanhi — Tue, 20 Apr 2021 20:08:25 GMT

How do I report on Turbo Tax for an excess SEP contribution for year 2020? Deposit was made on 4/12/2021 and error correction was made on 4/20/2021. Tax has not filed yet for Year 2020 on Turbo Tax. How do I handle it on TurboTax?

Re: SEP Excess Contribution

ThomasM125 — Tue, 20 Apr 2021 20:25:18 GMT

To report the earnings on the excess contribution, you should enter a Substitute form 1099-R and enter it on your 2020 tax return. You will see an option for this when you see the screen Tell us Which 1099-R You Have.

Enter in box 1 the distribution amount. In box 2 enter the earnings. Enter code "P" in box 7. Work through the questions in TurboTax after you entered the 1099-R until you see a question regarding why you made the distribution, to which you will respond it was a return of an excess contribution.

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SEP Excess Contribution

Re: SEP Excess Contribution