Like others here I find myself in the Roth IRA Excess Contribution quagmire. Have questions that I hope someone can help with.

[bill12215]

@DanaB27 

Followed the advice given on 2/27 (reproduced below) and that went well.  Tonight, I was doing my state (Pennsylvania) return and noticed that TurboTax included the 1099-R I created in the state return.  Should that be included in my state return too?  Thanks,

To create a 1099-R in your 2021 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2021?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2a enter the earnings
8. Box 7 enter J and P
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.
11. Answer all follow up questions carefully.

[DanaB27]

Yes, the Form 1099-R you created will be included on your Pennsylvania state return as well.

The Pennsylvania Department of Revenue states: "All IRA distributions should be reported on PA Schedule W-2S, Wage Statement Summary, whether or not some or all of the distributions are taxable. If a taxpayer receives distributions before he/she reaches 59 ½ years of age, some of the distributions may be taxable."

@bill12215

[bill12215]

@DanaB27 

Looking closer at what TurboTax created I don't see a W2-S.  When I tell TurboTax to generate all the files needed to submit my PA return it lists the following documents:

The 1099-R information is on the 'Gross Compenation Worksheet'.  This surprised me as I would not think worksheets should be sent in with the PA tax return.  The 1099-Rs aren't listed anywhere else in the return.

To make it even more odd TurboTax said the PA code for the Roth IRA 1099-R I created is 'J2'.  According to the TurboTax table below 'J2' means I'm younger than 59 1/2.  I'm a few years past that.  Confirmed that TurboTax has my birth date correct.  

Should the worksheet be sent in with the PA tax return?
If so, should I manually correct the code to 'J1'?

Thanks.

[RobertB4444]

It's trying to send the information about the retirement income that wasn't taxed.  You don't need to send it but it won't hurt if you do.  And if you do go ahead and change the code.