Get your taxes done using TurboTax

Yes, you will have to pay the 6% penalty for the 2020 and 2021 excess. Yes, you will need to file a 2020 and 2021 amended return.

No, you don't have to pay the 10% early withdrawal penalty on the Roth distribution since you didn't withdraw any earnings. make sure you enter your net contributions in the follow-up questions.

On your 2020 return, all you need to do is enter the Roth contribution and TurboTax will automatically calculate the 6% penalty on Form 5329.

On your 2021 return, you will have to pay the 6% penalty for the 2020 and 2021 excess contribution:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter your 2021 contribution
5. On the "Do you have any Excess Roth Contributions" answer "Yes"
6. On the "Enter Excess Contributions" screen enter the total excess contribution from 2020.

Please see How do I amend my federal tax return for a prior year?

On your 2022 tax return, you will enter your From 1099-R with code J to show that you removed the excess:

1. Login to your TurboTax Account 
2. Click on "Search" on the top and type “1099-R” 
3. Click on “Jump to 1099-R” and enter all your 1099-Rs
4. Click "Continue" on the "Review your 1099-R info" screen
5. Answer all the questions and make sure you enter the net contributions prior to 2022 (include the 2020 and 2021 excess contribution) on the "Enter Prior Year Roth IRA Contributions" screen
6. On the "Do you have any Excess Roth Contributions" answer "Yes"
7. On the "Enter Excess Contributions" screen enter the total excess contribution from 2020 and 2021.