Deductions & credits

Yes, you will have to amend your 2021 tax return to report your 2022 Form 1099-Rs. Only the earnings shown in box 2a are taxable and subject to the 10% early withdrawal penalty if you are under 59 1/2.

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Enter Form 1099-R and click "Continue"
5. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
6. Click "Add another Form 1099-R" to add the second Form 1099-R
7. Enter Form 1099-R and click "Continue"
8. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
9. Click "Continue" after all 1099-R are entered and answer all the questions.
10. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Another reason" if you are over 59 1/2 (if you are under 59 1/2 click "Continue")

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2020" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2021.

You don't enter the 2022 Form 1099-Rs with code P on your 2022 tax return unless you had tax withholdings. Then you have to enter it to get the taxes applied to 2022, TurboTax knows to ignore the distribution because of the code P.