Excess Contributions to 401(k)

[MomBob]

Client received 1099-R 2008 for excess contributions. The code in box 7 is a P (excess contributions taxable in 2007. The question is which year is the IRS looking for this income? in 2007 or 2008. Thanks for any input.

[AJsTax]

2007

You must amend the tax return for 2007 if the amount will change the tax liability. When you go to the screen for the input for the 1099-R there is a box to identify that it is code P for that year received in later year. Some state it in different ways.

[MomBob]

Thank you, I thought that was the case, but wasn't sure.