To recap, you made an excess contribution for 2020 but removed the excess plus earnings in 2021 before the due date of the 2020 tax return. And now you got a 2021 Form 1099-R with codes P and J.
This 2021 Form 1099-R with codes P and J belongs on your 2020 tax return. Box 1 should have the distribution plus earnings and box 2a should have the earnings. Only the earnings will be taxable and subject to the 10% early withdrawal penalty if you are under 59 1/2.
If you didn't request the withdrawal of excess contribution plus earnings but just took a regular distribution then you are able to enter your net contributions (include the excess contribution in your case) during the interview. The withdrawal of contributions is not taxable.
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2021 on the "Enter Prior Year Roth IRA Contributions" screen
- Answer the remaining question.
You can verify your entry by looking at Form 1040 line 4. If you didn't withdraw any earnings then 4b taxable amount will be $0.
- Click on "Tax Tools" in the left menu
- Click "Tools"
- Click "View Tax Summary" in the Tool Center window
- Click on "Preview my 1040" on the left
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