Hello,
I need help ensuring I am correctly reporting a transaction for my 2024 tax return.
The Situation:
- In 2024, I contributed
$6,999.96 to a Roth IRA but had no earned income for the year. - In September 2025, before my tax filing extension deadline (Oct 15), I had my broker (Schwab) process a "return of excess contribution."
- The total gross distribution removed from my Roth IRA was
$10,195.30. - This means the taxable earnings are
$3,195.34 ($10,195.30 - $6,999.96). - I understand these earnings are taxable on my 2024 return, but I will not receive a Form 1099-R for the 2024 tax year. I believe I will receive 1099-R in early 2026 for 2025 tax year.
The Question:
Based on research, it seems the best way to handle this in FreeTaxUSA is to manually create a 2024 Form 1099-R entry.
Can you please confirm if the following entries are correct to ensure the income and the correction of the excess contribution (Form 5329) are handled properly? I'm in Ohio (School District Number: 3204).
- What type of 1099-R?
Form 1099-R, 401(k)/pensions/IRA distribution - Payer's Name:
Charles Schwab & Co., Inc. - Payer's ID Number:
94-1737782 - Box 1 (Gross distribution):
$10,195.30 - Box 2a (Taxable amount):
$3,195.34 - Box 4 (Federal Income Tax Withheld):
$0 (I chose to withhold $0) - Box 7 (Distribution code(s)):
8 and J - Box 14 (State Tax Withheld):
$0 - Box 15 (State):
OH - Box 16 (State Distribution):
$10,195.30
Should all other boxes be left blank?
The whole form is shown below:
Thank you for your help!
