Yes, you will have to amend your 2019 tax returns to include the 1099-Rs. You do not need to delete the 1099-Rs from your 2020 return because the code P tells TurboTax to ignore the distribution information but if you prefer to delete them:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R” and you should see the “Review your 1099-R info” screen
- Click the "trash icon"
Only the earnings in box 2a are taxable income. Yes, only your husband will have the 10% early withdrawal penalty on the earnings because he was under 59 1/2 in 2019. You will not have the 10% penalty since you were over 59 1/2 in 2019. The 10% early withdrawal penalty is calculated on part I of Form 5329.
No, you do not have to pay the 6% excess contribution penalty because you removed the excess plus earnings before the due date of the 2019 tax return.
To clarify, you did not file your 2019 tax return with TurboTax or any other tax software?
The 1099-R amount from box 1 goes on line 4a of Form 1040 and box 2a goes on line 4b of Form 1040. The earnings from box 2a will go on Form 5329. Please see About Form 5329 to get the form and instructions. Also, see About Form 1040-X for the form and instructions.
Please see How do I amend my 2019 return? if you used TurboTax for your 2019 return.
Yes, you will have to amend the Hawaii state return as well.
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