403b prior year excess contribution and need for amendment

[mventura112158]

I had excess contribution to 403b in year 2020. My employer was notified prior to year end, but because of holidays, it was not processed until Jan 2021. No 1099 was sent. I got my excess contribution plus interest returned by check Jan 2021. When I filed taxes for year 2020, I added the principal excess contribution to schedule 1, part 1 additional income line 8 with comment "403b 2020 excess contribution return" with amount principal returned.

It pulled through on my 1040 return on line 8. There was no 1099 or option on turbo tax for 2020 excess contribution.

this year I received my 1099 with excess contribution and interest earned. I added the 1099 info where Turbo tax prompted. the Interest was added to 2021 income, and then Turbo tax said I needed to amend prior year (2020) taxes. Do I need to do this since I already included excess contribution from 2020 in 2020 return?

[DanaB27]

No, you do not need to amend your 2020 tax return since you have already reported the excess contribution on your 2020 tax return.

Yes, the interest earned will be added to your 2021 taxable income.