topic *I mean 12b data in Retirement tax questions

TurboTax shows excess 401K contribution for 2018. Requested Plan admin refunded excess amount and earning on Feb 2019. What should I do to file tax return for 2018?

fuchungwang — Wed, 05 Jun 2019 02:22:23 GMT

Reporting excess salary deferrals (excess 401k contributi...

MinhT — Wed, 05 Jun 2019 02:22:25 GMT

Reporting excess salary deferrals (excess 401k contributions) returned to you after the end of the tax year but by April 15th of the following tax year on your 1040. Do not create your own 1099-R for this situation.

Page 10 of IRS Pub 525 under Excess deferrals (the IRS term for 401K contribution is deferral) tells us to include the excess deferrals as income on line 7 of Form 1040 if the money was returned after the end of the tax year but by April 15th of the following tax year. You need to report only the excess contribution, not any money generated by the investment of the excess contribution. What you earned will be covered by a 1099-R for the following tax year and will be entered then as a normal 1099-R.

Below is how to do this in TurboTax:

Click on Federal in the left-hand column, then on Wages & Income
Under All Income, scroll down to Less Common Income
Select Miscellaneous Income and click Start
Select Other income not already reported on a Form W-2 or Form 1099 and click on Start
Answer the question "Did you receive any other wages? Yes
Click through the questions till you get to Any Other Earned Income
Answer Yes to Did you earn any other wages?
Indicate Other as Source of Other Earned Income and click Continue
For the description enter "2018 Excess 401K Deferrals" and click on Done

Do we report the value of the excess deferral? Or just e...

cmcbride1016 — Wed, 05 Jun 2019 02:22:47 GMT

Do we report the value of the excess deferral? Or just enter the description? If I am taxed on this amount for the 2018 tax year, will I also receive a 1099 and be taxed on this amount again when I file in 2020 for the 2019 tax year?

You should enter the amount of the excess contribution. Y...

MinhT — Wed, 05 Jun 2019 02:22:48 GMT

You should enter the amount of the excess contribution. You will not be taxed again in 2019 as the 1099-R that you will receive should have code P in box 7 which means Excess contributions plus earnings/excess deferrals taxable in 2018.

I followed these instructions and was informed I still ne...

robinlm — Wed, 05 Jun 2019 02:22:50 GMT

I followed these instructions and was informed I still need to paper file. When I print out the paper document I do not see anywhere my note of 401k Excess Deferrals that I entered on turbotax online. Why is it not showing on the printed docs?

Yes. I have same issue. E-file doesn’t work and paper fil...

dragonfly_turbo — Wed, 05 Jun 2019 02:22:51 GMT

Yes. I have same issue. E-file doesn’t work and paper file doesn’t print out this is for “Excess Income Deferral “. Would Turbo Tax people please fix it ASAP before April 15,2019 Tax deadline? Thanks!

TurboTax has a help link "how to fix Excess Contribution...

sahoo_deepak — Wed, 05 Jun 2019 02:22:53 GMT

TurboTax has a help link "how to fix Excess Contribution to 401K" with 3 specific examples. It says Create a 1099R (with whatever information you have) even you have not received yet(will receive in 2019 for 2018 excess 401K contribution) and select code "P" in the box(Weird though as P says for tax year 2017, which is not the case) and mark the 1099R as 2019. But my question is where will I get other info like Payer Tax ID, State Tax Id, address etc.(Those may not be same as employer stated in W2, I don't know until I get the real 1099R from my company and those needed to fill the 1099R) and Support here saying don't create 1099R for this scenario. Really confused what to do, Could Turbo tax support please clarify. Please help..!!! -Thanks.

Just Clarification: Changed the year I will receive 1099R...

sahoo_deepak — Wed, 05 Jun 2019 02:22:54 GMT

Just Clarification: Changed the year I will receive 1099R is in 2020 for 2019-1099R.
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TurboTax has a help link "how to fix Excess Contribution to 401K" with 3 specific examples. It says Create a 1099R (with whatever information you have) even you have not received yet(will receive in 2020 for 2018 excess 401K contribution) and select code "P" in the box(Weird though as P says for tax year 2017, which is not the case) and mark the 1099R as 2019. But my question is where will I get other info like Payer Tax ID, State Tax Id, address etc.(Those may not be same as employer stated in W2, I don't know until I get the real 1099R from my company and those needed to fill the 1099R) and Support here saying don't create 1099R for this scenario. Really confused what to do, Could Turbo tax support please clarify. Please help..!!! -Thanks.

I am in same boat. Is turbotax working to fix this issue?

ramana13 — Wed, 05 Jun 2019 02:22:55 GMT

I am in same boat. Is turbotax working to fix this issue?

Hope someone in Support or user community will reply...

sahoo_deepak — Wed, 05 Jun 2019 02:22:57 GMT

Hope someone in Support or user community will reply...

All, I have been researched other websites for answer and...

dragonfly_turbo — Wed, 05 Jun 2019 02:22:59 GMT

All, I have been researched other websites for answer and came across this from TaxAct.com. Please go to this link:

<a rel="nofollow" target="_blank" href="https://www.taxact.com/support/1210/2018/form-1099-r-code-p-excess-contributions-401k">https://www.taxact.com/support/1210/2018/form-1099-r-code-p-excess-contributions-401k</a>

"Code P indicates that the taxpayer contributed more than allowed to a 401k, IRA, etc. (through payroll withholding), and must include the excess contributions as income for the year in which the contributions were made. If the excess contributions have not already been claimed in that year, the return would need to be amended to include the excess distribution as income.

If the taxpayer has already included the excess contribution on their tax return of that year, they would not need to do an amended return, and can ignore the Form 1099-R received in the current year.

See Form 1099-R Instructions for Code P for more information.

To avoid the need to amend the return a year after the fact (if you already know you will be receiving a Form 1099-R next year with a Code P), include the data in the tax return in the current year with a Code 8. You can then ignore the Form 1099-R with the Code P when you receive it a year later. Code 8 indicates that the amount is taxable in the tax return you are currently working on, and Code P indicates the amount is taxable in the prior tax year."

I believe there are two solutions to this:

1). Report as "Miscellaneous Income" as suggested above.
2). Follow the TaxAct's advice and file a 1099-R and enter code 8 and amount on box 1a and 2 of the 1099-R you will receive from your 401K administrator. You can call them for payer ID and they should provide one to you. The actual amount may not be exactly as you have exceeded because gained and losses. File this along with your 2018 tax return as suggested above.

As far as the TurboTax printed form not including the 1099-R or mentioned anywhere about the excess return for income deferral. Actually the form is there after you filled it out. It's hidden.

1) Click on the "Forms" at the upper right hand corner right next to the state tax you own amount.
2) This will take you to all the detail paper work behind the user interface.
3) Click on the "Open Form" and expand the federal tax and search for 1099-R
4) There should be a 1099-R form you had filled out. Open it and save or print as PDF
5) Finally print the 1099-R and your final tax

All the above were just my personal opinion. Since I am not tax account. Please use it at your own risk.

Best Luck!

My other advice is to go to TaxAct and open an account an...

dragonfly_turbo — Wed, 05 Jun 2019 02:23:00 GMT

My other advice is to go to TaxAct and open an account and don't provide your actual social security number and just enter other income information to double check if you are filing it correctly. Remember if you don't file, you don't pay on this website.
This all we can do until TurboTax get back to us with real answer. If at all and before the April 15 deadline.

Thanks dragonfly_turbo !!!!

sahoo_deepak — Wed, 05 Jun 2019 02:23:01 GMT

Thanks dragonfly_turbo !!!!

Either creating 1099R or Reporting as Excess Deferral in...

sahoo_deepak — Wed, 05 Jun 2019 02:23:03 GMT

Either creating 1099R or Reporting as Excess Deferral in other section as mentioned in the review
W2-W2G summary showing error and can't proceed to file. On the 1040 form Line1 has the modified wages(reported W2 wage + Excess Deferral, reported either of these way) but it is not removing the 12b date. So how to proceed further and e-file?

*I mean 12b data

sahoo_deepak — Wed, 05 Jun 2019 02:23:04 GMT

*I mean 12b data

Any update Please, Can I do efile for have to paper file,...

sahoo_deepak — Wed, 05 Jun 2019 02:23:06 GMT

Any update Please, Can I do efile for have to paper file, even after modifying excess 401K contribution by choosing adding 1099R/Add to other income under excess Salary deferral. Any help is highly appreciated. I am really stuck...what to do, hate to do paper file, but if I have to then I will but need second opinion. Thanks in advance.

TurboTax has stated that efile does not work for people l...

dragonfly_turbo — Wed, 05 Jun 2019 02:23:07 GMT

TurboTax has stated that efile does not work for people like our situation (even with the latest software patches). So the only option is to paper file it via US Postal Services. Just printed out as I have indicated above and print out the 1099-R with the method I suggested. I would file both together so IRS knows that the extra amount is for "Excess Income Deferral". The code "8" in box 7 of 1099-R will indicate that this is for 2018 excess 401K contribution. So when you get the real 1099-R next January 2020. You can just ignore that since you already took care of it in 2018 tax return.
Just remember don't try to efile it. It doesn't look like TurboTax will fix it.
Best Luck!

Thanks dragonfly_turbo !!!

sahoo_deepak — Wed, 05 Jun 2019 02:23:08 GMT

Thanks dragonfly_turbo !!!

Re: TurboTax has stated that efile does not work for people l...

user4902 — Sun, 15 Mar 2020 03:29:32 GMT

Hi there - I was in the same boat last year, but I was not aware of TT's issue of not including the 1099-R. Do you know if I can figure out if I did the right thing by looking at my tax return numbers?

Re: TurboTax shows excess 401K contribution for 2018. Requested Plan admin refunded excess amount...

DaveF1006 — Mon, 16 Mar 2020 23:44:00 GMT

it may but we wouldn't be able to view it here in community. You may wish to contact a specialist that can view your return to see if you did it correctly.