No, you should have Form 5329 on your 2021 tax return
But you need to make sure to remove the excess contribution from 2020 on your 2022 tax return. If it is carried over to your 2022 return then make sure to remove it when you file the 2022 return next year (maybe set a reminder in your phone for tax time).
You will have the pay the 6% for 2020 and for 2021. If you haven't paid it for 2020 because it wasn't included on your 2020 tax return then you will have to amend your 2020 tax return. Please check Form 5329 line 25 and Schedule 2 line 6 on your 2020 tax return.
To get TurboTax to create Form 5329 on your 2021 tax return:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Continue until "Do You Have any Excess Roth Contributions" screen and answer "Yes"
- Verify/ Enter the excess contribution amount from 2020 on the "Enter Excess Contributions" screen
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