@dmertz
I have another question that I just received an answer to from Vanguard today. On my 2020 1099R, they list the amounts as outlined in the table below. There is an X against the 6500.00 in box 2b which for some reason doesn't show below. As mentioned I filed substitute 1099-R with my 2019 return for 2019 excess contribution removed in 2020 and paid the tax on the earnings as well with my 2019 return (Gross 7559 removed of which earnings are 559).
However, below Vanguard reported the distribution as $7000 only instead of 7559 and the Vanguard representative says since the distribution was made in 2020 it is taxable in 2020 and so it is included below as part of the 3446.96 amount (box 1) and in the 1292.99 taxable amount in 2a. Not sure if their reasoning is correct but now if I put these numbers in my 1099R in TT as is, I will be paying tax on the 559 again this year. How can I enter this in TT so as to avoid having to pay the tax again and at the same time not cause confusion for the IRS
Gross distribution (Box 1) | | Taxable
amount not determined ---(Box 2b)-- | Federal income tax withheld (Box 4) | Employee contributions/ Designated Roth contributions or insurance premiums (Box 5) | Distribution code(s) (Box 7) | | 1st year of desig. Roth contrib. (Box 11) | State tax withheld (Box 14) | State/Payer's state no. (Box 15) | State distribution (Box 16) |
6,500.00 7,000.00 3,446.96 | | | | | | | | | | |
