My 2025 1099-R shows distribution code P but Form 8606 adjusts cost basis in error. Excess contribution was returned prior to 4/15/2025 so no cost basis adjustment due.

pkliphon — Tue, 17 Mar 2026 15:50:14 GMT

TT does not allow Code P to select Corrective Distribution or Returned before due date. TT generates an incorrect Form 8606.

Re: My 2025 1099-R shows distribution code P but Form 8606 adjusts cost basis in error. Excess co...

AmyC — Fri, 20 Mar 2026 16:11:49 GMT

Since the income was taxable in 2024, we need to make the program agree. Look for these key questions:

"Did you take a distribution from a traditional IRA?"
- Answer Yes (this is the 1099-R).
"Tell us if you moved the money through a rollover or conversion."
- Do not select rollover. Select "I am returning an excess contribution."
"What was your basis on Dec 31, 2024?"
- Ensure this matches your actual 2024 Form 8606, Line 14.
"Value of all IRAs on Dec 31, 2025"
- Do not include the returned excess amount here.

If you did not include the income in your 2024 return, it should be amended.