Withholdings issue ammeding 2023 taxes to add 1099R

[In Need of Help]

• I am amending my 2023 taxes to add a 1099R related to a distribution I made in 2023 but did not receive the 1099R until 2024. Despite the distribution occurring in 2023, the 1099-R form from Fidelity has 2024 listed. 

• The issue I am having is that when I put the information from the 1099R into TurboTax, it does not update the withholdings amounts on my 1040 so my amended taxes are rejected due to a F1040-034-08 error (Withholdings not matching). 

• It is my understanding that the withheld amount on my 1099R should be added to the 25b field on the 1040. I have not found a way to manually update the 1040 in TurboTax to correct this error. 

• I am not sure how to proceed to correct this issue so any guidance would be appreciated. 

[rjs]

You can't enter a 1099-R for 2024 in your 2023 tax return. If Fidelity reported it as a 2024 distribution you have to enter it in your 2024 tax return.

Why did Fidelity report it as a 2024 distribution? Did you submit the order at the end of December 2023 and it didn't get processed until January? Check your statements covering December 2023 and January 2024. What date does the statement show for the distribution? The date that matters is when the distribution was actually paid out, not the date that you submitted the order.

If you sold securities in an IRA and distributed the cash proceeds, the cash might not have been distributed until the business day after the sale.

[dmertz · Accepted solution]

Because this Form 1099-R is a 2024 form, this form indicates that the distribution actually occurred in 2024 even though you might have requested it late in 2023.  Unless the form includes code P in box 7, the form is reportable only on your 2024 tax return.

If the 2024 Form 1099-R includes code P in box 7, the amount in box 2a of this form is taxable on your 2023 tax return, the tax withholding is credited on your 2024 tax return, not on your 2023 tax return.  Such a Form 1099-R must be entered into both 2023 TurboTax and 2024 TurboTax so that it is all reported correctly.

If the distribution truly occurred in 2023, a fact contradicted by the receipt of a 2024 Form 1099-R for this distribution, you need to sort that out with Fidelity.

[In Need of Help]

You were correct, the actual distribution date was Feb-12-2024 however the reason for the 1099R in the first place was to correct an excess contribution to my Roth IRA. That excess contribution was made in and it had earnings in 2023. My 1099 has the codes PJ and when I filed my 2024 taxes TurboTax informed me that I may need to amend my 2023 return. When I tried to add the 1099R to my 2023 amendment I got the issue with the federal income tax withheld not matching. So should I add the 1099R to 2023 tax amendment but leave the amount of federal income tax withheld to $0 for 2023 since it was withheld in 2024?

[dmertz]

In 2023 TurboTax, enter the code PJ 2024 Form 1099-R as received.  Because, when asked, you will tell 2023 TurboTax that the form is a 2024 Form, 2023 TurboTax will ignore the withholding from the form and use only the amount from box 2a.

In 2024 TurboTax, enter the code PJ 2024 Form 1099-R as received.  Because, when asked, you will tell 2024 TurboTax that the form is a 2024 Form, 2023 TurboTax will ignore the amount in box 2a and use only the withholding from the form.