@Bakes wrote:
Thanks for the super fast reply.
I wasn't given a choice to decline the tax w/h. Since I don't have the 1099-R, I should create a substitute 1099-R to indicate withholding and use the code JP 2021? I don't get why I'll have to do this on 2021 Turbotax as well (and not just 2020).
I really appreciate the help!
You also report it in 2021 to get credit for the tax withheld. Because the tax was withheld in 2021 it can only be applied to 2021.
Returned contributions are taxed in the year that the contribution was *for*, Tax withheld is credited in the year that th tax was withheld.
Also you do not use a substitute 1099-R, just a real 1099-R being filed early (you do not have a real 1099-R that is defective to substitute for).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
