@Bakes wrote:
What do you mean 'all those boxes'? I had the broker pay federal and state taxes on the earnings. They required me to do that. Don't I want to indicate this?
box 4 for federal paid
and further down in the state area?
See my answer above.
It makes no sense to have tax withheld on a return of a prior years return of contribution because it is taxable in the year the contribution was *for*, but any tax withheld can only apply to the year that the withholding was done (2021). When you receive the "real" 1099-R next year you must also enter that on your 2021 tax return to get credit for the tax withheld.
The 2021 code P entered in 2020 will ignore any tax withholding, entered in 2021 it will ignore everything except any tax withholding.
**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.**
