Retirement tax questions

1)Yes, you will enter the Roth contribution on your 2020 return but on the penalty screen you can enter the amount of excess contribution you removed.

Yes, you need to report the withdrawal of excess contribution and earnings on your 2020 return. You can do that now or you can wait until you get the Form 1099-R 2021 in 2022 with code P and J and amend your 2020 return then.

If you want to included it now then you enter it like this on your 2020 tax return:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2020?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2 enter the earnings
8. Box 7 enter P and J 
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.

2) Yes, your withholdings will be entered on your 2021 return since it is a 1099-R 2021. You will enter it on your 2021 tax return and because of the code P TurboTax will know to ignore the distribution but will carry the federal tax withheld to line 25b and the state tax withheld to you state return.

3) No, you will not enter the tax withholdings on your 2020 tax return when you create the Form 1099-R to report the withdrawal of excess contribution plus earnings. The withholdings belong on your 2021 tax return.

4) No, do not select substitute 1099-R.

5)Yes, if you wait until you actually receive your Form 1099-R 2021 in 2022 then you will have to amend your 2020 tax return to include the Form. Please see How to amend (change or correct) a return you already filed. You will also enter the Form on your 2021 tax return to get credit for the taxes withheld.

@laquan