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Get your taxes done using TurboTax
You need to report the 1099-Rs on your 2019 tax return. You will be taxed on the earnings and receive a 10% penalty for early withdrawal. You just add the 1099-R information into TurboTax the same way it shows on the forms you received.
The 1099 R will be entered in the Retirement Plans and Social Security section.
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Retirement Plans and Social Security
• Select IRA, 401(k), Pension Plan Withdrawals (1099-R)
Since the over contribution was made in 2018 you need to fill out form 5329. This is a stand alone form that you can send in without amending your 2018 tax return.
This form reports to the IRS the excess contribution amount and charges a 6% penalty for the excess contribution.
If you do not want to fill it out manually you can amend your 2018 return and TurboTax will fill out the form. If you amend your return to get the form filled out you can still just send the form 5329 to the IRS by itself along with the payment due.
Link on How to amend Prior Year Returns Using TurboTax
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