DanaB27
Expert Alumni

Get your taxes done using TurboTax

Did you withdraw the earnings when you withdrew the excess contribution? If yes, then your 1099-R box 1 should have the whole distribution amount (excess contribution and earnings) and box 2a should have the earnings listed (taxable amount).

 

When you amend your 1099-R you will enter it as shown with the codes P and J and then click continue. TurboTax will ask you what year is on the 1099-R and you will answer 2020, then TurboTax will calculate the correct tax due. Only the earnings are taxable.

 

When you filed your 2019 return before, did you tell TurboTax that you are withdrawing the excess contribution (where you enter the IRA contributions) by the due date? This should have eliminated the 6% excess contribution tax. If not then go to the IRA contribution section and find the " You Currently Have a Penalty" screen where you can enter the amount you withdrew before the due date of the 2019 return.

 

Please see How do I amend a 2019 return in TurboTax? for additional information.

 

 

@Lost2020

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