@ThomasM125
Thank you for your response. I think there may have been some miscommunication.
- I made the contribution in 2020
- I removed the contribution plus earnings in February 2021 (before the April 15th filing due date)
- I made around $275 in earnings, and will therefore be taxed 10% as an early withdrawal penalty because I am under age 59 1/2
- Form 5329 will need to be filed to report the additional tax
- I have a Form 1098-T showing scholarships/grants > qualified expenses by around $6k
- Do I report the excess scholarships/grants as income?
- My Form 1098-Ts from prior years also showed scholarships/grants > qualified expenses by around $4k, but my parent's tax preparer did not report or file anything
- I am confused because the excess scholarships/grants were not reported in prior years, so will I need to report it?
