My client received a 1099-R Code J - Early Distribution From a Roth IRA.  The distribution was for an excess contribution in 2019 and reported on the 2021 1099-R  with 6,000 in Box 1 and 0 taxable in Box 2A.

The broker advises that the 6,000 is a return of contribution all basis so non taxable.  However the broker stated in an email that this 6,000 had 1,110 in earnings attributed to it.  I told them the earnings need to be reported on the 1099 and to what year they are related to - in  this case 2019.  The broker still maintains that these earnings are not taxable and can be retained/not reported relying on a statement on the H&R site reference this issue which I will post the link to here.  They are claiming that bullet #3 "After the Extended Due Date of Your Return"  the last line there stated "you do not need to remove any earnings made on the excess".  They are implying those earnings can remain in the account based  on this last section and sentence because it is "After the due date of the return" as opposed to bullets 1 and 2 where you report the earnings.