@DanaB27
Well @DanaB27 , after over an hour on the phone with my institution, my problem got more complicated (insert nervous laugh here). I know why this whole process has been so confusing (should have been a lot easier if not for the information below).
So the $1000 I contributed to Roth was actually recharacterized the same year 2020, however in March 2021 this $1000 was recharacterized again (glitch in the system by the financial institution, it should never have been allowed to happen). Hence all my confusion with so many forms and numbers that didn't add up.
The same situation applies to my wife. She initially made a contribution of $1000 into Roth which was recharcterized the same year (2020), but made another contribution of $1500 to Roth by accident. In March of 2021 instead of recharacterizing this $1500, the institution recharacterized $2500 (including the $1000 recharacterization already done in 2020).
They are working on providing new 1099-R and 5498, however this will take 3-5 weeks.
How can I apply for an extension for 2021 tax year, and are there any repercussions in doing so? What information can you provide me? Any advice would be greatly appreciated in this whole situation.
Thank you!
