In 2021, a client made a contribution to a ROTH IRA when he did not qualify to make the contribution.

Return is on extension. The client had the excess contributions removed from the account, along with the income generated by the contributions.

Per my research, the income is supposed to be picked up in the year the contribution was made (not when the income was distributed). Therefore, I believe it needs to be picked up on the 2021 tax return.

However, I am not sure where to enter the income. My feeling is that it should just go as "Other Income" not subject to SE tax.

Anyone deal with this before?

Also... does anyone who has dealt with this know... if the clearing house going to issue a 1099-R for this, and is it going to show up next year?

Thanks!