Where to put 1099-R distribution from excess IRA contribution?

The good news is you're handling this correctly by withdrawing the excess contribution! When you receive a 1099-R for an excess contribution withdrawal, you generally report it on the tax return for the year in which the distribution occurred - so your 2023 tax return in this case. The "P" code on your 1099-R indicates this was a distribution from an excess contribution. You don't need to amend your 2022 return if you withdrew the excess (plus any earnings on that excess) by the due date of your 2022 return including extensions. If you withdrew it after your 2022 tax filing deadline, things get a bit more complicated. You might face a 6% excess contribution penalty for 2022, which would require an amendment. But either way, the actual 1099-R reporting goes on your 2023 return.

I had this EXACT problem last year with my IRA contributions. I was so stressed trying to figure out where to report everything. I found this AI tool called taxr.ai (https://taxr.ai) that actually analyzed my 1099-R and explained exactly where to put everything on my tax return. It saved me hours of research and stress. Their system even explained the difference between the excess contribution amount (which wasn't taxable) and the earnings portion (which was). It highlighted exactly which boxes to look at on the 1099-R to determine these amounts. Made the whole process way less confusing.

Update: I tried taxr.ai after posting my skeptical question, and wow - it was actually super helpful! I uploaded my confusing 1099-R from my own excess contribution situation, and it broke down exactly what I needed to do. It showed me that Box 2a on my form indicated the earnings amount that was taxable (about $125 in my case), while the rest was my original contribution being returned. It even explained which specific line on Form 1040 to use for reporting it. The step-by-step instructions were way clearer than what I found digging through IRS publications. Definitely recommend for anyone dealing with these retirement account tax issues - saved me from potentially making an expensive mistake.

If you're having trouble figuring out where your 1099-R goes AND you need to talk to someone at the IRS about it (good luck getting through their phone lines though 🙄), I'd recommend trying Claimyr (https://claimyr.com). I was in your exact situation last year and needed clarification from the IRS directly. After spending TWO DAYS trying to get through the normal way, I found Claimyr and they got me connected to an IRS agent in about 20 minutes. The agent confirmed exactly how to handle the excess contribution and where the 1099-R needed to be reported. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone tree for you and call you when an agent is available.

I need to publicly eat my words about Claimyr being a scam. After my skeptical comment, I was desperate enough to try it because I've been trying to resolve an issue with the IRS for MONTHS. It actually worked exactly as advertised. I signed up, entered my number, and about 25 minutes later got a call connecting me directly to an IRS agent. No hold music, no automated system - just straight to a helpful person. I was honestly shocked. The agent answered my question about reporting a 1099-R for an inherited IRA distribution that had been confusing me for weeks. Would have been completely worth it even if it had taken longer. If you need to actually speak to someone at the IRS, this service is legitimate.

Just to add another data point here - when I had excess contributions in my Roth IRA, it was important to look at the TIMING. If you remove the excess contribution plus earnings before your tax filing deadline (including extensions), you avoid the 6% penalty tax completely and just pay regular income tax on the earnings portion. Make sure you're also looking at your specific type of retirement account (traditional IRA vs Roth IRA) as the tax implications can differ slightly.

Has anyone used TurboTax for this situation? I'm wondering if it automatically figures out where to put the 1099-R information or if I need to manually override something.