To recap, you made an excess contribution in 2021 for 2021 and just removed the excess without earnings as a regular distribution in 2021 and therefore receive a Form 1099-R with code J.
You will enter $0 for the question about prior year excess contributions since it seems you only had an excess in 2021 and not in 2020 or prior years.
Did you have any earnings in regards to the excess contribution? Did you remove them as well? If yes, then you can enter on the penalty screen during the IRA contribution interview that you removed the $6,000 excess contribution by the due date and avoid the 6% penalty.
To avoid the 6% tax on excess contributions, you must withdraw:
- the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
- any income earned on the excess contribution.
You will have to enter your Form 1099-R on your tax return:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Answer all follow-up questions carefully.
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