Reporting earnings on Traditional IRA excess contribution

[KT99]

I have removed an excess 2021 IRA contribution prior to filing my 2021 taxes.  Where specifically in TT do I report the earnings from an excess IRA contribution?  I know I am taxed and penalized (under age 59 1/2) on the earnings in 2021 but I don't know where to enter the earnings from the excess contribution.  Can anyone help me out?

[ThomasM125 · Accepted solution]

You would make an entry for a substitute form 1099-R and put the withdrawal amount in box 1 and the earnings in box 2(a). You will see an option to create a substitute form 1099-R on the screen that says Tell Us Which 1099-R You Have when you go to enter the form 1099-R. Code the substitute form 1099-R as "8" and "1" in box 7, for excess contributions plus earnings and early withdrawal.

@KT99 

[Edited 4/6/22 @ 8:22 PM PST]

[KT99]

That is super helpful.  Thanks!  ...and how do I handle the 10% penalty properly?

[ThomasM125]

Sorry! Also enter code 1 in box 7 for early distribution, no known exception.