Get your taxes done using TurboTax

1. You can check with your financial institution. But you do not have to enter any tax withholdings when you create Form 1099-R for the withdrawal of excess contribution plus earnings on your 2021 tax return.

2. No, you still can create Form 1099-R on your 2021 tax return since you do not need to enter the tax withholdings on your 2021 tax return. They belong on your 2022 return because they were withheld in 2022.

3. You will create the Form 1099-R like this:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2021?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2a enter the earnings
8. Box 7 enter J and P
9. Leave Box 4 federal withholdings and Box 14 state withholdings blank.
10. Click "Continue"
11. On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.
12. Click "Continue" after all 1099-R are entered and answer all the questions.
13. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount under "Another reason" if you are over 59 1/2 (if you under 59 1/2 click "Continue")

Next year on your 2022 return you will have to enter the 2022 Form 1099-R with code P and J as well to have the taxes applied to 2022. Just enter the Form 1099-R as received, the 2022 code P will not do anything in 2022 tax return but the withholding will be applied to 2022.