Reporting 1099-R from prior year

[suttonm11]

Hello

Last year I had return of excess IRA contributions for 2023 and included them in my 2023 return (due to the excellent advice on this web site).

This year I have received, as expected, a 2024 form 1099-R with code P.  I entered this into TurboTax 2024 and it warned me that I would probably have to amend my 2023 return - also as expected....and of course I don't because I entered it into the 2023 return last year.

Please look at the screenshot attached to see how the entry looks in my 2024 return. The $7554 from 2023 is now included in my 2024 total of $8512.  Can I leave it like this (the software seems to have ignored it for the 2024 the tax calculation) or is it better not to enter the 1099-R with code P amount into 2024 at all?

My question is : which approach is most preferred by the IRS? 

a) To see it in my 2023 return and then repeated in the 2024 return as code P (since its a 2024 form 1099-R), or

b) to leave it out of the 2024 completely?

thank you

[ThomasM125 · Accepted solution]

It is better to report it on your 2024 return because the IRS may match the total distributions they see from the 1099 forms submitted to them with the total reported on your tax return. If there is more reported than you list on the tax return, they may question that.

[suttonm11]

Makes sense - I'll do that

many thanks