Thank you @SusanY1 & @macuser_22 for your responses
When I follow @SusanY1's post, I can confirm no taxable income is added to my 2019 return when I correctly enter the 1099-R with all the codes and relevant data but Turbo Tax does throw up a warning saying my 2018 return may need to be amended.
When I enter the 1099-R into my 2018 return, @macuser_22 is correct that it adds no taxable income to box 4b even though the distribution (Box 1) is shown in 4a.
I have a couple of follow up questions:
1. Can I safely ignore turbotax's warning that my 2018 return may need to be amended? From what I can tell, even if I did amend the 2018 return based on this 1099-R, the tax owed wouldn't change. The only thing that would change is box 4a on form 1040.
2. This is more a theoretical question because I am curious: If I had any earnings or interest on this excess contribution, I would have to pay tax on the earnings. Since I have a loss, shouldn't the loss be deducted from my earnings of 2018 (or 2019) and reduce my tax bill?
Thanks.
