Excess Roth contributions withdrawn and taxes withheld

[hchan32]

So I made erroneous Roth IRA contributions in 2020 when I had no earned income, but withdrew all my contributions and earnings in February before the filing due date (April 15, 2021). I won't be receiving my 1099R from Vanguard until next year in 2022, but I need to file this year since I owe the 10% penalty tax on my earnings.

I complicated things by requesting federal and state withholding when I removed my contributions and excess. I'm inputting my withdrawal of excess as a 2021 1099-R. Now TurboTax is asking me for the Box 15 Payer's State Number but I don't have the information since I won't be getting the 1099-R until next year. I want to e-file my return but I can't e-file without the Payer's State Number. I've seen this thread suggesting that I input the payer's federal EIN in replacement.

Since I withdrew my excess and earnings in 2021, I know that the taxes withheld apply to 2021 and not 2020. Can I just exclude the withholding information when filing for my 2020 return since it won't affect my 2020 taxes even though I know that the 1099-R I received next year will have those boxes filled?

[DanaB27]

Yes, you can just exclude the tax withholdings when you create the 1099-R on your 2020 tax return since they are for 2021.

Just enter the following information for the 1099-R:

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)
6. Box 2 enter the earnings
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.

Please be sure to include the 1099-R 2021 on your 2021 tax return when you receive it to get credit for the taxes withheld. The rest of the distribution information won't get carried to Form 1040 because of the code P in box 7.