1099R is in mail, but won't arrive by tax day - workaround?

[Aminy]

By accident $168 was over-contributed to my 403b plan (switched jobs this year, apparently that can happen).  Contacted the plan manager and they said they'd issue a form for the (presumably1099R), but it probably won't arrive by tax deadline.

Is there some way I can anticipate this and just file taxes once, or do I have to file again when I ultimately receive it?  Thanks!

[DianeW777]

You will need to file once you receive the Form 1099-R.  

If you need extra time and file an extension, it will waive failure-to-file penalties until October 18th. However, if you would have owed tax on April the 18th, the IRS will assess monthly late payment penalties and interest until you pay. 

I recommend to extend your return with a TurboTax Extension and also pay your best guess of anything you may owe. If you overpay, it will be refunded. If you underpay, it will only calculate penalties on the part that was not paid. TurboTax has a tool called TaxCaster to give you an idea of your tax liability and/or refund. 

You can vary different items and see how that could impact your return. Click for TaxCaster

[Aminy]

Thank you @DianeW777 , TT indicates I'm due refunds for both state and federal.

My taxes are all ready to go via the downloaded TT on my computer.  Is there a way to get the extension service you linked to operate with that?

[BrittanyS]

Yes, you can file for an extension even though you use TurboTax Desktop.  The link provided by Dana is the link to use to file for the extension.  If you have never used TurboTax Online, you may have to create an online ID and password.  Here is the link again for your reference:

TurboTax Extension 

@Aminy 

[Aminy]

I wish it were that simple.  TT online start asking me all the questions I've already responded to in the desktop version, so looks like I essentially have to go through all the pain 2x.

[DanaB27]

To confirm you made an excess deferral in 2022 and received the excess in 2023? If yes, then you won't get the 2023 Form until next year (2024).

If this is the case then you have to add the excess deferral to your 2022 wages with these steps (if you want to avoid amending your 2022 tax return when you get the 2023 Form 1099-R with code P):

1. Click "Wages & Income" (under Federal) on the left side of your screen
2. Scroll  down to "Less Common Income" and click "Show More"
3. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
4. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
5. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
6. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
7. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
8. On the "Any Other Earned Income" screen enter "2022 Excess 403(b) Deferrals" for the description, enter the amount and click "Done".

If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2023 tax filing due April 15, 2024: 

2023 Forms 1099-R will be issued reporting the excess.

• Form 1099-R with code P in box 7 can be ignored if you reported the excess as described above in 2022. 
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2023.

@Aminy 

[Aminy]

Yes - excess contribution during calendar year of 2022.  I notified my prior employer about this, and they submitted a form to Fidelity who oversees the fund, but I have NOT yet received a check for the excess amount (but presumably will this calendar year).

Appreciate, @DanaB27 , how you laid out the TT steps.

[DanaB27]

Please be aware, if you do not take out the excess amount by April 15th, then you are taxed twice on the excess deferral left in the plan.  This happens once when you contribute it (with the steps I provided) and again when you receive it as a distribution. You can't include the excess amount in the cost of the contract even though you included it in your income.

Please see Pub 525 for additional information.

@Aminy 

[Aminy]

Thanks, @DanaB27 .  I don't know if it's been taken out of the fund yet or not, since that's not something I have direct control over (Fidelity has to take it out at the request of my employer).

[DanaB27]

You might want to check with them on the status. 

If it was distributed after April 15th, 2023 then you will have to report the 2023 Form 1099-R on your 2023 tax return to be taxed a second time on the amount.

@Aminy 

[Aminy]

Managed to find out via Fidelity that check was issued already, though I've not received it, so I can follow the steps @DanaB27 described.

[BrittanyS]

Yes, if the check was issued prior to April 15, 2023, follow the steps provided by DanaB27.  Here are DanaB27 steps:

"If this is the case then you have to add the excess deferral to your 2022 wages with these steps (if you want to avoid amending your 2022 tax return when you get the 2023 Form 1099-R with code P):

1. Click "Wages & Income" (under Federal) on the left side of your screen
2. Scroll  down to "Less Common Income" and click "Show More"
3. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
4. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
5. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
6. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
7. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
8. On the "Any Other Earned Income" screen enter "2022 Excess 403(b) Deferrals" for the description, enter the amount and click "Done".

If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2023 tax filing due April 15, 2024: 

2023 Forms 1099-R will be issued reporting the excess.

• Form 1099-R with code P in box 7 can be ignored if you reported the excess as described above in 2022. 
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2023."

@Aminy