How to fix 401k excess deferral 2019 after tax return filing already done

[punitrenjini]

In 2019, I did excess deferral to 401k due to my job change.

In March 2020, I already filed tax return for 2019, and realized I have $778 excess deferral.

Today on March 31st, I got the distribution amount back, which shows excess deferral $778, and earnings $46. I know I will get two 1099-R Form in January 2021. As per my research, these forms will take care only earning parts which is taxable earning for 2020.

The problem is I have already file the tax-return in March 2020. Now what are my options to take care of excess deferral $778.

1) Should I amend 2019 tax return, and Include this $778 amount as miscellaneous income? Can I amend my tax return online in turbo-tax or do I need to paper file it?

2) Can I take care of $778 excess deferral in next year filing for 2020 tax-returns?

I used turbo-tax premier online version for filing my return.

[Anonymous · Accepted solution]

 if you are getting a w-2 

if the excess amount was deferred on a pre-tax basis (wages on line 1 reduced) , your employer must amend your  W-2 to show the returned amount as wages.

your excess deferral occurred in 2019, and you provided timely notification to your plan administrator. If your contributions were made on a pre-tax basis, your employer must amend your W-2 for 2019 to show the excess deferral amount as taxable wages (in box 1).

if you're self -employeed, I'm not sure how TT allowed an excess but whether w-2 or Self employed you must amend 2019

what to do if employer won't issue corrected w-2 if that's what you get

• Click on the "Federal Taxes" Tab
• Click on the "Wages & Income" Tab
• Click on "I'll choose what I work on"
• Scroll down to "Less Common Income"
• Select "Miscellaneous Income" and click Start or Update
• Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
• Answer the Question "Did you receive any other wages?  Yes
• Click through the questions until you get to "Any Other Earned Income"
• Answer Yes to "Did you earn any other wages?
• Indicate "Other" as Source of Other Earned Income and click Continue
• For the description enter "2019 Excess 401K Deferrals" and click on Done

you will get a 1099-R in 2020 code P which you can ignore 

[punitrenjini]

For others who faced same situation.

1. I did what @Anonymous  described while amending turbo tax.

2. Tax-return amendment can't be filed electronically, so now I need to print it out. And post state tax with check to state address, and federal tax with check to Federal address.

And I followed this answer also while doing my tax amendment.

https://ttlc.intuit.com/community/retirement/discussion/regardless-of-whether-your-hr-department-is-able-to-distr/01/486081/highlight/true#M44885