Here is what you DO need to do and what you DO NOT do with your 2021 Form 1099-R due to excess Roth IRA distribution:
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You DO need to go back and amend your 2020 to report the earnings because the earnings are included in the taxable income for the year the excess contribution was made (2020). You only pay tax and penalty on the $3,000 earnings. Let TurboTax program know that it is 2021 Form 1099-R.
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You Do NOT file the 1099-R form with your 2021 taxes unless there are federal and/or state taxes withheld. Taxes withheld will lower your 2021 tax liability or increase your refund.
For more information, see Option 2 in this help article.
For help with amending your 2020 return, click here.
@martymoose
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