Am 61, not filed yet, got back Roth overcontribution from brokerage as Excess Contribution Return of $2,473 and Contribution Return Earnings $673. How do I report?

[craigrrose]

This is for 2020 Tax year

[fanfare]

Your taxable amount is $673.

If you enter the 1099-R correctly, that should be the result on your 1040.

[DanaB27]

Please follow these steps to enter the 1099-R as shown on the form:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” 
4. TurboTax will walk you through entering all information.

If you withdrew the 2020 excess contribution and earnings in 2021 then you will get a 1099-R 2021 in 2022 with codes P and J. This 1099-R will have to be included on your 2020 tax return and you have two options: 

• You can wait until you receive the 1099-R  2021 in 2022 and amend your 2020 return or
• You can report it now in your 2020 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or box 14 State withholding. Then you must enter the 2021 1099-R into the 2021 tax return since the withholding is reported in the year that the tax was withheld. The 2021 code P will not do anything in 2021 tax return but the withholding will be applied to 2021.

To create a 1099-R in your 2020 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Select "I'll type it in myself"
5. Box 1 enter total distribution (contribution plus earning) $3,146
6. Box 2 enter the earnings $673
7. Box 7 enter P and J 
8. On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.