Roth excess contribution and earnings removal

Forum|Forum|6 months ago
March 24, 2026
1 reply
217 views

I have completed my 2025 taxes. Now have to do amended return for 2025 Roth Excess Removal for contribution and earnings. I am 62 years old. I will complete amendment before the tax deadline of 4/15/26.

As I go through the steps and get to the end the amount of tax now owed doesn’t add up to the 24% tax bracket amount for the amount

I owe $1809 for the earnings and in 24% tax bracket, so it would seem to me I should owe $434.00 in additional tax for Federal, but TT says I owe $467 for Federal and $213.00 for state (CA). I don’t know where I have gone wrong for it not to add up correctly?

When I put in art in box 1 gross distribution, I entered the initial contribution with the earnings total amount, is that correct?

When I am inputing the amount on 1099R (that I won’t receive from Vanguard until 2026 for this my 2025 taxes), how am I to answer when it asks “What year is on your Vanguard Marketing Corp Vanguard Brokerage 1099-R?

Check your form for the year. It might not be the year your contribution was made.” Do I check 2025 or 2026???

Thank you for any help you can offer.

ReneV4

Level 8

In the U.S. progressive tax system, adding $1,809 in earnings usually results in a tax exactly of 24% of that amount. However, if TurboTax is showing that you owe a higher amount, it may be due to a small portion of that income pushing into the 32% tax bracket, or it slightly reduced a tax credit you were receiving.

You had questions about how to report the earnings. Since you will not receive your official Form 1099-R until 2027, follow these steps to enter the substitute 1099-R:

Go to Income on the left panel within your TurboTax account
Click on the +Add more income box
Scroll down to Retirement Plans and Social Security and click the down arrow to expand
Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
Click on +Add a 1099-R, select the Enter a different way box, then Type it in myself
On the next screen, you can select Type it in myself, or other options, then Continue
Select the box on the top left for Financial institution or other provider (1099-R), then Continue
Enter the provider's information, then Continue
Enter the details from your Form 1099-R, enter total distribution in Box 1 and only the earnings in Box 2a
Ensure the IRA/SEP/SIMPLE box is unchecked
Use Distribution Code J & P in Box 7, then Continue
Choose Year 2026 as the year on your Form 1099-R
Continue until, "Tell us which person may have qualified for a penalty exception" and select the pencil symbol
Next, on the, "These situations may lower your tax bill" screen, enter the amount of earnings under, "Corrective distributions made before the due date..."