Thanks. This helped clarify the confusion. I am doing this so that i can report the earning from Roth IRA excess contribution in my 2016 return this way I wont have to amend 2016 return in 2017 when i do the taxes for 2017. I would get my 1099-R in 2018 for excess contribution i removed in February 2017. Yes it has Federal and State Taxes withheld (10% of earning) by Vanguard. My Roth IRA excess contribution was $4000 due to earning limit so i removed the excess contribution and earning which was about $4803. This means my taxable earning is $803 which i will report in Box 2a. Vanguard applied 10% for Federal tax and with held $80 and also withheld MA State Tax of about 42.
