Yes, you select to wait for the 2022 Form 1099-R with codes P and J and amend your 2021 return. You can use the instructions to help you enter the Form 1099-R on your 2021 amended tax return.
If you make an excess contribution and don’t withdraw it by the due date, then you will have to pay each year the 6% until the excess is removed or absorbed by an allowed contribution. You will have an excess carried over to 2021 and you will need to enter $6,000 on the "Enter Excess Contributions" screen on your 2021 tax return since you didn’t remove the 2020 excess by the 2020 tax return due date.
Excess Roth IRA credit means if you are allowed to make a Roth contribution in 2021 then you can apply the excess contribution from a prior year as a 2021 contribution. If you are allowed to do that then you will get a "How Much Excess to 2021?" screen right after the "Enter Excess Contributions" screen.
Please make sure that you have entered the recharacterization with the steps below:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the traditional IRA contribution amount
- Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
- TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
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