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Do I need to file and amended return for 2015 even though I filed a timely request for return of excess contributions before the tax filing deadline?

Forum|Forum|7 years ago
June 5, 2019
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Inadvertently, I made an excess contribution of $1400 to my traditional IRA in Dec 2015. Before I filed my taxes for 2015, I realized my mistake and requested the return of the excess contribution before the tax filing deadline. I claimed no deductions for the excess contribution on my taxes for 2015. I incurred a loss of $37.52 on the excess contribution. Therefore, I only received $1362.48 as a return of excess contributions. I received a 1099R showing in box 1 $1362.48 of gross distributions, $0 in Taxable amount in box 2a. Code P is shown in box 7 as the distribution code. Turbo tax suggested I may need to file an amended return for 2015. In that I timely withdrew the excess contribution and incurred a loss, do I really need to file an amended 2015 return? How do I accomplish this through Turbotax?

TurboTax Premier Windows

Best answer by dmertz

Since you did not report a deduction or nondeductible contribution for the returned $1,400 and you had no taxable earnings on the returned contribution, there is no need to amend your 2015 tax return. Although your 2015 tax return should have included an explanation statement regarding the return of contribution, if the IRS ever questions the amount that was returned, you can provide explanation at that time. Just be sure to retain records indicating that the code P Form 1099-R represents a return of $1,400 of contribution since the From 1099-R only shows the adjusted amount distributed.

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dmertzAnswer

Employee

Since you did not report a deduction or nondeductible contribution for the returned $1,400 and you had no taxable earnings on the returned contribution, there is no need to amend your 2015 tax return. Although your 2015 tax return should have included an explanation statement regarding the return of contribution, if the IRS ever questions the amount that was returned, you can provide explanation at that time. Just be sure to retain records indicating that the code P Form 1099-R represents a return of $1,400 of contribution since the From 1099-R only shows the adjusted amount distributed.

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Opus 17

Employee

If you reported on your tax form that you had an excess and did not remove it, and then you did remove the excess after you filed but before the April 17 deadline, then you need to file an amended return so that the forms are correct and the removal of the excess is reflected in the IRS records.

Here are the general amending instructions, pick the one for your year and filing type.

Amend https://ttlc.intuit.com/replies/3288565