I asked the following questions and got half answered by someone earlier. As I am trying to file my 2020 before May 17, I need someone to help. Here are the questions.
My AGI is over the limit. I have my 2020 ROTH contribution return with gain. Since I won't be getting a 1099-R until January or February next year. I am now creating a substitute 1099-R for my 2020 tax return according to DianeC958’s instruction.
I am 70, so what is the code for the Box 7? I had a guy from Schwab said PJ. Doesn't look like it. P is Return of contribution taxable in 2019 - but mine is taxable 2020. And J is early distribution which I believe is for those under 59 1/2 and subject to 6% penalty.
My wife also contributed to her 2020 ROTH and was also returned. She made $5,000 contribution in 2020 and $2000 in 2/1/2021. Schwab said the earning for $5000 contribution is to be reported in 2020 Tax Return only. As it takes days for Schwab to respond to a question. Another guy I talked to didn't understand the split.
So the question on my wife’s 1099-R is: The total earing given is $514.30. That means the Total Return Distribution with gain made this year is $7,514.30. I split the earing by proportion. That is earning for 2020 & 2021 are $367.36 and $146.94 respectively.
So for her substitute 2020 1099-R which I am creating : Is Box 1, Gross distribution $7,7514.30 or $5,367.36 or $5,514.30? As I believe Box 2 Taxable Amount is $367.36 as $146.94 is for 2021 Tax Return. Please advise.
