Given what you've suggested, I don't feel super comfortable reporting the 1099-R now as there can be human error in what they tell me, and then I'd have to amend anyway. So I'm preferring to just do an amendment next year for 2020 and include it in that. Regarding this, I have a few questions:
1) Besides taking the time to do the amendment next year, is there any other negative aspect of going with this route, especially from IRS's perspective ? ... For example, would there be any additional interest and/penalties for waiting till next year to report these earnings through an amendment ?
2) Do I report the contributions I made (which later got removed) ? If yes, I assume I would need to report the withdrawal in TurboTax too right ?
3) Assuming the answer is 'yes' for both questions in #2 above, if I do that, won't the IRS be wondering why I didn't report the earnings based on that excess contrition, and ONLY reported the contribution itself which was later removed ? Because they will know through form 5498 that they get from the brokerage that I made Roth IRA contributions in 2020.
4) Would I need to attach a statement with my 2020 tax return on why I'm not reporting the earnings on those excess contributions now ?
5) Could waiting till next year to report the 1099-R through an amendment increase the chance of an audit, either this year or when I do the amendment ?
