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Get your taxes done using TurboTax
Yes, the earnings shown in box 2a will be taxable income and subject to the 10% early withdrawal penalty if you are under 59 1/2.
To confirm, you requested the withdrawal of excess contributions for 2022 plus earnings and received it in 2022. The 2022 Form 1099-R should have codes 8 and 1 in box 7.
If you are over 59 1/2 then you can enter the amount of earnings under "Another reason" on the "Did you use your IRA to pay for any of these expenses?" screen (in the follow-up questions after you entered all Form 1099-R).
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‎April 8, 2023
10:35 AM