How to amend for return of excess IRA contribution

Forum|Forum|2 years ago
February 7, 2024
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I received a 2023 1099-R showing the 2022 tax year return of excess (Roth IRA) contribution (including earnings) done in early 2023 before I filed my 2022 income taxes. This 1099-R was entered on my 2023 Turbotax, and I don't see it was used as a factor in determining my 2023 taxes. When I entered it into Turbotax, I did get a one time popup indicating I might have to amend my 2022 tax return. When I try to do that by launching 2022 Turbotax and enter the 2023 1099-R info, with the code PJ, 2022 Turbotax lists it as "return of contribution taxable in 2021" (incorrect). There is another option for code 8 "return of contribution taxable in 2022" (correct, but that is not the code that appears on my 2023 1099-R). It would seem entering code 8 instead of PJ would be the way to go to have it compute the correct taxable amount for tax year 2022, but that doesn't match the 2023 1099-R I received that reflects this excess contribution being returned.

Best answer by AnnetteB6

Please be aware, even though code P will say in the drop-down menu "Return of contribution taxable in 2021" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.

After entering your 1099-R information as shown on the Form on your 2022 amended return click "Continue"
On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
Click "Continue" after all 1099-R are entered and answer all the questions.
Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings (box 2a) under "Corrective distributions made on or after December 29, 2022 and before the due date of the return".