1099R Code P

[sshams95]

Taxpayer received a 2008 1099r code P for excess contributions. 2007 return already reflected the excess properly. This was done by the previous taxpayer, who accidently reported on Line 19.

Taxpayer provided me the HR letter for 2008 excess, for which he will get 1099R next year. Taxpayer wishes to report the excess in the 2008 return, as amount has already been determined. How do I record this in ATX? As a 1099R or W2? How should I record it so that Efile would be accepted?

Thanks!

[Tax Prep by Deb]

Taxpayer received a 2008 1099r code P for excess contributions. 2007 return already reflected the excess properly. This was done by the previous taxpayer, who accidently reported on Line 19.

Taxpayer provided me the HR letter for 2008 excess, for which he will get 1099R next year. Taxpayer wishes to report the excess in the 2008 return, as amount has already been determined. How do I record this in ATX? As a 1099R or W2? How should I record it so that Efile would be accepted?

Thanks!

So you are saying that the taxpayer already included the excess and paid taxes on it on his 2007 tax return? If this is correct just enter the 1099R as a 1099R and make sure you put the code P as is on the 2008 1099R it will transmit as informational only. It should not show up anywhere on his 2008 tax return.

If the amount was not included on his 2007 tax return you will need to ammend it and include it on the 2007.

Deb!

[sshams95]

correct, 2007 already included the excess. What I want to do is include the 2008 excess in the current tax return, we already know the amount. should i record as 1099R or Other Income?

[Tax Prep by Deb]

correct, 2007 already included the excess. What I want to do is include the 2008 excess in the current tax return, we already know the amount. should i record as 1099R or Other Income?

I did it as other income and used the explanation of excess distribution of retirement plan for 2008.

I did this a couple of years ago and have not heard anything about it.

Deb!

[sshams95]

I did it as other income and used the explanation of excess distribution of retirement plan for 2008.

I did this a couple of years ago and have not heard anything about it.

Deb!

thanks!

[Joel]

Did the taxpayer remove the excess contribution made in 2007? If no, then there still is an excess contribution in 2008 and the penalty applies.

[Tax Prep by Deb]

Did the taxpayer remove the excess contribution made in 2007? If no, then there still is an excess contribution in 2008 and the penalty applies.

Good Catch!

In the situation that I dealt with a couple of years ago my client had no choice, the plan immediately sent him a check for the amount that didn't pass the test, the overage. So in my case that was never an issue, but it could possibly be in this case. It all depends on if or is he going to get the excess back.

Deb!