Get your taxes done using TurboTax

Yes, you will tell your financial institution that you want a return of the excess contribution. 

You will get a 1099-R  in 2021 with codes P and J. This 1099-R will have to be included on your 2019 tax return and you have two options: 

• You can wait until  you receive the 1099-R in 2021 and amend your 2019 return or
• You can report it now in your 2019 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/of box 12 State withholding. Then you must enter the 2020 1099-R into the 2020 tax return since the withholding is reported in the year that the tax was withheld. The 2020 code P will not do anything in 2020 tax return but the withholding will be applied to 2020.

To create a 1099-R in your 2019 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Select "I'll type it in myself"
5. Select "I need to prepare a substitute 1099-R"
6. Box 1 enter total distribution (contribution minus loss)
7. Box 2 leave blank
8. Box 7 enter P and J 
9. On the "Which year on Form 1099-R" screen say that this is a 2020 1099-R.
10. Continue until you get to the explanation screen and answer that you are reporting a 2020 1099-R on your 2019 tax return to avoid having to amend in 2019.