First time filer, filing my taxes for Y2020.
Background: Single Filer, 1099-G (unemployment income only) of ~19K.
I created a Roth IRA in Feb 2021 and contributed 5K towards my 2020 Roth contribution.
From my understanding, I cannot contribute to my Roth since my income is only derived from 1099-G.
My balance in my Roth IRA account is slightly smaller than my contribution, roughly $200 less. So $4800 versus $5000 contributed.
After research, I was told that I should immediately withdraw (contribution + gains if applicable) and they would send me a 1099-R.
- I was told that any gain/loss in 2021, would be applicable to Y2021.
- Will I receive this 1099-R this year to apply to my Y2020 taxes or Y2021? If it applies to Y2020 if I file now and receive the 1099-R later, will I have to amend my taxes?
- If I receive the 1099-R in Y2021 for this mistake, how will this affect my taxes in 2021, when I do get a job and contribute towards my 2021 Roth IRA limit?
For filing itself on turbotax, there's three sets of information that I have to input
- Did you have any retirement contributions or investment expenses for 2020? (I put in yes and typed in a Roth contribution of $5,000).
- >System then tells me that my contribution is too high.
Tell us the value of your Roth IRA. (I inputted $4,800 as my balance is slightly smaller due to fluctuation in stocks)
- You currently have a penalty. Contribution withdrawn before due date of your return = ?
What should I put in for questions 1, 2, 3?
Do I put in $4,800 withdrawal for a loss, or do I state that I will withdraw the full $5,000 even though my balance is smaller than my contribution?
Thanks
