Excess IRA contribution, same year in cash - will I get the required 5% state withholding back?

[busydbee]

I made an honest mistake and transferred $6000 x 2 into current year 2020 contribution.  I realized the mistake hours later but was not able to reverse the excess $6000.  Since there's no earning, I will have no federal tax penalty.  But the state of Massachusetts requires a 5% state tax withholding for removal of excess contribution.  Will I be able to claim that when I file taxes for 2020?  Thank you!

[macuser_22]

Yes.  Your 2020 1099-R should have the state withholding in box 12 which will be applied to other state withholding and used to offset any state tax or add to your state refund.