The earning (in the 1099-R box 2a) must be claimed in the tax year that the contribution was *for* not returned. When you receive the 1099-R next January that should have a code PJ in box 7, you would need to amend 2019 to report it.
When you enter a 2020 1099-R with a code PJ into TurboTax 2019 it will ask what year is on the 1099-R, 2019 or 2020 - you choose 2020 and TurboTax will apply the earnings and a 10% penalty of you are under age 59 1/2.
If you are over 59 1/2 then on the "Lets see if we can lower your tax bill" enter the box 2a amount in the "Another Reason" box to eliminate the 10% early withdrawal penalty on the earnings.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
