2023 IRA Excessive contribution gain

[D-25]

I received 2024 1099R for 2023 IRA Excessive Contribution gain of $58.

Can I report the gain in 2024 return instead of filing 2023 amendment which is really messy?

Turbo Tax does not include the gain or taxable income from 2024 1099R in 2024 income (annuity).

Thank you.

[DanaB27]

No, if your 2024 Form 1099-R has codes P and J for the return of an excess Roth IRA contributions plus earnings then the earnings have to be reported on your 2023 return (IRS).

Please see How do I amend my federal tax return for a prior year?

1. Click "Wages & Income" (under Federal) on the left
2. Scroll down and click "Show more" next to "Retirement Plans and Social Security"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Enter Form 1099-R
5. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
6. Click "Continue" after all 1099-R are entered and answer all the questions.
7. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

[D-25]

Thank you for your explanation on that "P" for 2023, and IRA link.

I wonder if I need include this 1099R in 2024 return since I am making amendment for 2023.

[DanaB27 · Accepted solution]

You only need to enter it also on your 2024 return if you had taxes withheld.

If yes, then you must enter the 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not do anything to your income to the 2024 tax return income but the withholdings will be applied to 2024.

If you didn't have any taxes withheld you do not enter the 2024 Form 1099-R with code PJ on your 2024 return.

[D-25]

Thank you so much for your time and clarification, Dana.

My 1099R does not have tax withhold. I will remove it from 2024 return to keep it clean.