Hi:
I am in the same situation, as I contributed to my ROTH IRA last year May 2019, and as I am working on my Turbotax 2019, I found out that my AGI was too high for this contribution. So I worked with my brokerage to withdraw that excess ROTH contribution, with some gain. Fed and State taxes were not withheld for the gain.
Turbotax IRA contribution worksheet has line 25 for "ROTH contribution", and line 26 for "ROTH withdrawal before tax filing", and line 28 for "total ROTH contribution". On line 26, Turbotax doesn't allow me to enter the full withdrawal with gain, it only accepts the same amount as line 25, and therefore line 28 shows a 0, which is what is shown on my Summary of "Your 2019 Deductions and Credits" under "Traditional and ROTH IRA contributions"
My questions:
- Is the above the correct way to file this year's tax return, which is 0 contribution for ROTH?
- My brokerage will not issue the 1099-R until the 2020 tax year in 2021. Turbotax will automatically download the information into my 2020 tax return then. So will I be paying Fed and State taxes for the gain at that time?
Thank you very much for your help, and I look forward to your response as I would like to finish my tax return and file ASAP.
