1099-R and Amendment questions

[CRAM5]

On 3-2023 I contributed $7500 to my IRA for 2023. On 2-2024 I mistakenly contributed an additional $7500 for 2023, both were nondeductible. I filled out an excess IRA contribution form and the excess was removed in time on 4-15-2024, incurring a loss of $133. I filed my 2023 taxes on time but did not address the 1099-R since I had not received it yet. I received a 2024 1099-R on 1-2025. Box1=$7367, Box2=$0.00, Box4=$0.00, Box7=code P (excess contributions plus earnings taxable in 2023), IRA=X. I thought the code would have been an 8 but the payer stated the code P is accurate in my case since I had no earnings on the returned excess. 

I'm unsure of the following.

   On my 2024 Turbotax program under Wages & Income/IRA (1099R) I answered yes to if I received any retirement income for 2024 and filled out my 1099-R info with code P. The program says, "It looks like you may need to amend your 2023 return because the 1099-R reports earnings on a contribution you made in 2023, this information needs to go on your 2023 return".  I'm not sure of this since I had no earnings on my 2024 1099-R.

Form 8606 Return of IRA contributions says if you made a contribution for 2023 and you had it returned to you in 2024 by the due date, don't report the distribution on your 2024 tax return. Instead report it on your 2023 original or amended return. Also form 1040 lines 4a & 4b, IRA Distributions, Exception 2 part 4 apply to my situation, I think. I believe I need to enter the 2024 1099-R Box 1 distribution of $7367 on line 4a of my 2023 form 1040.

Right now, I don't have a value on my 2024 form 1040, line 4a or 4b. I did the amendment steps on my 2023 return. I entered the 2024 1099-R into the 2023 amendment and selected year 2024 when asked what the 1099-R year was. The program says we don't detect any difference between your original 2023 return and your amended return and if your sure you need to amend to explain why. The only change I see now is that the 2023 form 1040-line 4a = $7367 and form 1040X A & C columns are the same. No change in taxes due or refund.

The questions I have are does the 1099-R with code P seem accurate?

Do I need to amend my 2023 return? All that seems to change is the form 1040-line 4a value of $7367 and the creation of a 1040X with similar A & C information. I did notice on my 2024 1099-R Summary form, under "Distributions on 2024 1099-R's not reported on the 2024 Return", code P line 35 says "Distribution reported on 2023 tax return =$7367".  To satisfy that statement and the previous 2024 Return comment of needing to amend the 2023 return I feel I need to do it. 

Just looking for some guidance and help before I go ahead with this.

Thanks!

[fanfare]

when you have a loss after removal of an excess, there is no tax.

You don't have to amend.

You can just ignore a 1099-R with a code P and taxable amount Zero.

@CRAM5 

[fanfare]

You did all the work and got exactly the correct result.

If TurboTax lets you SUBMIT , you are just reporting a distribution that is not taxed.

I don't think TurboTax will e-file a 2023 1040-X so you would have to mail it in. It's not necessary.

@CRAM5 

[fanfare]

When mailing 1040-X, 

Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

That's just another reason to not file an amendment in your situation.

@CRAM5 

[CRAM5]

Thanks for the reply Fanfare!

Just to be clear I did not address the return of excess contribution on my 2023 TurboTax return prior to filing. I did not have the 2024 1099-R nor did I enter the $7367 return of excess amount into my 2023 return so my original 2023 1040 line 4a is blank. I did enter the 2024 1099-R with code P into my 2024 TurboTax return and that 1040 line 4a is also blank. The IRS apparently receives a copy of my 2024 1099-R so they are aware of the nontaxable returned excess contribution. I'll just  hold on to a copy of the 1040X and updated 2023 1040 with line 4a showing $7367 for my records since the amendment isn't necessary.

Thanks again!