Prior Year Roth Contributions disallowed, now what do I do for 2020 taxes?

[bmg60]

For tax year 2019 (filed in 2020), we made contribution throughout the year to our Roth IRAs.  While doing our 2019 taxes, it was discovered that we were not allowed to make a contribution to our Roth IRA due to our modified adjusted income.  So since this was discovered in 2020, we had our broker withdrawal our contributions and earnings.  This was completed prior to filing the 2019 return.  I don't believe we did anything more for 2019 other than showing that the contributions weren't allowed in the IRA Contrib. Wks.  Now doing our 2020 taxes and we get a 1099 R showing  Gross Distributions in Box 1 of $1506.25 (1200.00 Contribution + 306.25 income).  Taxable Income in box 2a shows the income of $306.25. Distribution Codes in box 7 show to be JP. 

Questions:

1.  Now what do I do? 

2. Should I have made up a 1099-R for 2019 when this was discovered?  I read something about this on a similar question).

3.  Do I file an amended return for 2019?   Showing the earning as a distribution?   

Thank you .    Life becomes so complicated at times.

I

[DanaB27]

You will have to file an amended return for 2019 and enter the 1099-R you received. Please see How do I amend my 2019 return?

No, you were not required to create the 1099-R when you file your 2019 return. Just some people prefer to do this to avoid having to amend their return.

Yes, you will enter the Form 1099-R as shown in your 2019 amended return and answer all follow up questions. Only the earnings will be taxable.