![]() ![]() How to Save Money on Your Cell Phone Bill.How to Free Up Space on Your iPhone or iPad.How to Block Robotexts and Spam Messages.On the screen " Choose Not to Deduct IRA Contributions" answer " Yes" (if you are thinking about doing a backdoor Roth.TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized. ![]() Answer “ Yes” to the recharacterized question on the “ Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses).Answer “ No” to “ Is This a Repayment of a Retirement Distribution.Click on " Search" on the top right and type “ IRA contributions”.You should have entered the recharacterization when you enter the 2021 contribution to the Roth IRA on your 2021 tax return: If your Form 1099-R doesn't have code R in box 7, can you provide more details on what code is listed in box 7? Does it show taxes withheld? The box 1 on the 1099-R will report the total recharacterized amount (contribution plus earnings) but it does not separately report the earnings and box 2a must be zero. Therefore, you do not enter a Form 1099-R with code R. But a Form 1099-R with code R will do nothing to your return. You can only report it as mentioned below. A recharacterized IRA contribution made for 2021 belongs on the 2021 return. I tested adding it to my return (using 2022 TurboTax Deluxe) and it results in a higher refund, but it doesn't seem right.Ĭan someone advise the right way to handle this 1099-R? Please let me know if my situation and question aren't clear and I'll try to clarify.Ī Form 1099-R for recharacterization should have code R in box 7 and shouldn't have any income tax withheld. But it doesn't seem right to NOT include it on my return since the brokerage firm reports this 1099-R to the IRS. My question is what is the correct thing to do with this 1099-R (2022)? If I add it to my 2022 return it seems like I'm accounting for it twice, since I already included a substitute 1099-R (form 4852) in 2021. I received a 1099-R (2022) from the brokerage firm in Jan 2023 and the values closely match the 4852 filed for TY2021, including Gross Distribution, Taxable Amount and Federal Income Tax Withheld. For tax year 2021 I had to recharacterize Roth IRA contributions (done before filing 2021 return) and filed with my 2021 return a substitute 1099-R (form 4852) with the numbers from the brokerage firm. ![]()
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