Retirement tax questions

Yes, you are correct it should be code P and J in box 7. After you enter the information on the 1099-R screen you click continue to select the year on your 1099-R (step 10 below). When you select 2021, then TurboTax will know that code P means "Return of contribution taxable in 2020".

To create a 1099-R in your 2020 return please follow the steps below:

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 2a 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.