In 2021, I estimated that I would be able to make the full Roth contribution of 6000, however, my AGI was just slightly above the limit and I overcontributed by $40. I contacted Vanguard and was able to get the $40 (plus any earnings) returned BEFORE I filed my 2021 taxes in May 2022. Because this excess was returned, my 2021 taxes were filed showing a Roth IRA contribution of 5960, which was the maximum I could contribute for that year. Note that I filed it with a contribution of 5960 instead of a contribution of 6000 and a distribution of 40 for the excess.
The total amount returned came out to be $40.81. In January of 2023, I received a 1099-R with boxes J and P checked, showing the amount of 40.81, of which $0.61 is taxable and 0.20 was withheld for federal taxes. My question is, since I already reported a contribution of $5960 on my 2021 W-2, do I need to amend that return with the 1099-R I received in 2023?
Additionally, would I need to include the 1099-R showing 40.81 for my 2022 tax filing since it shows a small taxable amount of 0.61? Basically, I'm confused as to whether to include the 1099-R on my 2022 tax return, or to amend my 2021 tax return with the 1099-R.
Thanks!
