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Retirement tax questions
You need to do something on your 2019 tax return. Since you withdrew the excess contribution before filing your taxes you do not want to report on your 2019 return that you made an excess contribution, this avoids you paying the 6% penalty for over contributing to your Roth IRA.
To report the earnings the withdrawal create a 1099-R in your 2019 return
You enter the 1099-R with the total distribution in box 1 (the contribution plus the earnings),
The earnings in box 2a,
Enter code "P" in box 7 (Top)
Enter code "J" in box 7 (Bottom).
On the "Which year" screen say that this is a 2020 1099-R.
After the 1099-R summary screen press continue.
This taxes the earnings for this year and then when you receive the 1099-R for 2020 there is nothing to report since you have already reported the information for 2019.
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