@DanaB27
Hi Dana, hope you had a great weekend. I wanted to give you an update, and hopefully get some of your advice.
So after speaking with my institution, since the double recharacterizations were requested (not sure why) and processed, the tax forms I currently have will have to be used going forward, and it is costing me more due in taxes of $800-900 between my wife and I.
I recharacterized $1000 in 2020 and this same $1000 in 2021. This $1000 is essentially a double recharacterization and is outstanding for year 2020 (even though I didn’t contribute another $1000 to Roth).
The initial recharacterization of $1000 in 2020 was entered as a 1099-R I received, and I put on my amended 2020 form that I had an outstanding recharacterization of $1000 and recharacterized this whole $1000.
So essentially I contributed only $1000 to Roth in 2020, but recharacterized $2000 (2020 and 2021). Is it even possible to enter a recharacterization amount greater than what was contributed?
Do you have any recommendation on how to report this? I feel that I should maybe file the way we have been talking about this whole time and report the outstanding recharacterization of $1000.
Thanks
@DanaB27
