Roth IRA Excess Contribution 1099-R

[momof3]

Clients received 1099-R for excess contributions. Gross amount is $800 and taxable amount is $50. Distribution code J ( early distribution ) and P (excess contribution). Is this subject to the 10% penalty? If so, is the entire amount of $850 subject to it? If not, what code to I use to exclude it?

Thanks for the help.

[lsowers]

Use form 8606 to report basis

[joanmcq]

Got one of these; confused the heck out of me...because its not taxable on the 2007 return (look up code P). Its taxable on the 2006 return, so you are supposed to amend.