Why do I put J in box 7 when J is for Early Distribution from a Roth IRA. We are over 60, so it is not an early withdrawal. It is a withdrawal to correct an excess contribution because we had no earned income in 2021. Can I just put P and nothing else. P is excess contributions plus earnings in 2021?
Do I have to put J and P for some reason in box 7 of a substitute 1099-R? When we get the real 1099-R from our investment company in Jan 2023, I don't know what letters or numbers will be on it. (We discovered the excess contribution for 2021 in Feb of 2022 and the transaction to return excess contribution and earnings on excess contributions was done in Feb of 2022.)
Also, when creating this substitute 1099-R, why would I say yes that I have received a 1099-R for 2021 when I didn't receive one. I will receive a 1099-R in 2023, but I don't know what date will be on it. I don't know if it will say 2021 or 2022. Excess contributions were made in 2021 and there were earnings in 2021 and we have to pay taxes on the earnings in 2021, but don't know how the 1022-R will be labeled. Also, some transactions were made in 2022 from that Roth IRA, so those transactions will be labeled 2022. But, concerned about the 2021 transactions now. I want to do the paperwork and tax return correctly so we won't have to amend the return next year.
