On your 2020 tax return, you will enter the $6,000 contribution to the Roth and continue through the questions until you get the penalty screen, there you have the option to enter the $800 that you withdrew by the due date of the 2020 tax return. You will enter the 1099-R for the return of excess contribution plus earnings to report the taxable earnings.
On your 2021 tax return, you will enter the $6,000 contribution to the Roth and enter the 1099-R for the return of excess contribution plus earnings to have the tax withholdings applied to 2021. Enter the 1099-R as shown on the form. The 2021 code P will not do anything in the 2021 tax return but the withholding will be applied to 2021.
To enter the Roth contributions:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
To enter the 1099-R:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
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