I tried to amend my 2021 return due to excess roth but somehow after I input everything it says no change in my taxes, even though I'm pretty sure I'm supposed to pay a penalty fee on 2020 contributions. I made contributions in 2020, 2021, and 2022, and when I realized I was not qualified I withdrew the contributions in June of 2022. I went back to amend my 2021 return. Below are my steps: 1) I select I'll choose what I work on
2) I scroll to the 1099R section
3) I enter the 1099R with code JP ($0 earnings because I was losing when I withdrew) and select 2022 on the question which year for form 1099R
I also enter the 1099R with code J only (I believe this is the 2020 one)
4) After that I click next and it asks various questions like did I owe the Roth for at least 5 years which I select no. Did I have a roth open on 12/31/2021 which I select yes because I still have my roth account.
5) On the question withdraw from roth IRA before 2021, do I answer "No" here? because I withdrew the amount for all three years in 2022?
6) Enter Prior year roth IRA contributions. For this question I went back to all my contributions in roth and add the amount up until 2020. Do I also include the 2021 contribution in here or only up until 2020 contribution? Do I need to subtract out any distributions if I withdraw the money in 2022 for all three years? Currently I'm not subtracting out any.
7) Enter excess contributions question, I'm currently entering excess amount for 2020. Do I need to enter excess amount for 2021 in here also?
😎 After that it says explain return of contribution and I just type in not qualified for 2020 and 2021.
It then closed out the section. I don't see the penalty portion anywhere. I know I'm supposed to pay a 6% for 2020 contribution. Thank you.
