1)No, the earnings from the returned excess contribution have to be included in the year for which the contribution was made. Therefore the $674 have to be included on your 2020 tax return.
2)To create a 1099-R in your 2020 return please follow the steps below:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- Select "I'll type it in myself"
- Box 1 enter total distribution (contribution plus earning)
- Box 2 enter the earnings of $674
- Box 7 enter P and J
- On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.
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