Yes, if you did not report the excess contribution plus earnings withdrawal on your 2019 return by creating a 1099-R then you will have to amend your 2019 tax return. Please see How do I amend a 2019 return in TurboTax?
When you enter the Form 1099-R 2020 with code P in your 2019 amended Tax return then TurboTax will include the distribution but ignore the taxes withheld. Only the earnings will be taxable.
- Enter your 1099-R information and click "Continue"
- On the "Which year on Form 1099-R" screen say that this is a 2020 1099-R.
The code P on the Form 1099-R 2020 will tell TurboTax to not include the distribution on the 2020 tax return. If taxes were withheld the TurboTax will carry the federal amount on line 25b on Form 1040 of your 2020 tax return and the state tax withheld will be carried to your state tax return.
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