Thanks @MichaelG81 . Do you know which tax return it should be applied to - 2021 or 2022? I realized that I have an excess only after filing my 2021 return, but pulled it out before the deadline. While reading many posts on this forum I noticed that there are mainly two divided suggestions on how to handle excess contribution with no taxable income (with a loss) and they do contradict each other:
1. if there is no additional income - there is nothing to amend in 2021
2. since the excess is for 2021, 1099-R should be applied for 2021 through amendment (?), but yet I have in fact no additional income.
Finally, if IRS got my 2022 1099-R with no taxable income and with PJ codes, it seems they should be knowing already there is/was nothing to report, should not they? So, I’m confused between these two options above. This type of amendment creates lots of hustle while de-facto nothing is changing: inability to e-file the amendment (that comes from IRS publication for Roth IRA removals), paying additional fees to TT. I would really appreciate if you could give some more clarity .
Thanks again for your help!
