1099 R for 2022

[Stacy44]

I received a 1099-R for 2022, reflecting $111 in Box 1, nothing in Box2a, an "X" in box 2b and "1P" in box 7.  This  represents a return from over funding a traditional IRA in 2021, which was distributed in April 2022, to correct over funding.  Is it necessary to amend 2021 tax returns?

[JohnB5677]

This happens frequently, and there is no reason to panic. 

If you don't file an amended return, 

• the IRS may send you a Notice of Proposed Increase in Taxes.  
• This may take several months to get to you. 
• They will calculate the tax due (plus interest and penalties) and you can send them a check (no amended return necessary). 

If you want to make changes or add a document to a tax return that has already been submitted, you should follow these guidelines.

• You must first wait until the initial return is completely processed.
• You will have to use the same TurboTax account that you used for the original tax return.
• Once you begin your amendment, you'll see your original return. 
  • The refund calculator will start new at $0 and only reflect the changes in the refund or tax due.
  • Only make changes to the areas of your return that need amending.
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment.

Select your product below and follow the instructions.

Amend TurboTax Online

Amend TurboTax CD/Download

[Stacy44]

Thanks for your feedback.  One follow up question, if the 2021 tax return reflected the net ira contribution (net of the over fund or after the payment was withdrawn), (1) do I still need to amend the return and (2) if so, do I reflect the gross amount before the return of funding?

[DawnC]

If your excess contribution was $111 and you did not include it in your deduction (you told TurboTax you would withdraw it by the due date and did so) and there were no earnings, you don't need to amend it.

How to treat withdrawn contributions.

Don’t include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both of the following conditions are met.

• No deduction was allowed for the excess contribution.
• You withdraw the interest or other income earned on the excess contribution.

How to treat withdrawn interest or other income.

You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made. Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions.

Excess Contributions

[Stacy44]

Thank you SO much!  Best answer:)