@Dave8812 wrote:
The code in box 7 is: PJ
Yes, there is tax withheld in box 4
Box 2a shows the taxable amount (which looks like it is the amount of interest that was made on initial contribution)
Code P means that the box 2a amount is taxable in 2019, so the 2020 1099-R must be entered into an amended 2019 tax return. The interview will ask what year the 1099-R is for - (2019 or 2020) select 2020.
It makes little sense to have any box 4 tax withheld for a contribution return because tax withholding can only apply to the tax year that it was withheld - (2020) Also enter the 1099-R into your 2020 tax return. The box 1 and 2a will be ignored but the box 4 tax withheld will go on the 2020 1040 line 20b to offset 2020 tax or add to refund.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
