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I just requested a return of an excess contribution to my Roth IRA for my 2020 tax return. My understanding of the excess contribution and earnings is that you would request the $32 excess from the company that you have your IRA with (mine had a form to fill out). The financial company not you will determine the amount of interest earned on the excess and return both to you.
Also was told I will not get a 1099-R for this transaction until 2022, but the earnings need to be reported on my 2020 tax return. I am current reading through this thread to see how to do that. So far it sounds like you enter a substitute 1099-R and the codes in box 7 will depend on when you got the excess and earnings returned. If I understand it correctly for my situation (excess was for 2020, taken back in 2021) it looks like box 7 will be a P and J. Hopefully DMertz will confirm this info for both of us.
