For context, I over contributed $1,000 to my Roth and plan on paying the 6% penalty and have this extra contribution applied to 2024. To keep the math simple, let's say that my end of year balance is $500 for the year the over contribution was made.
1- When I enter the $1,000 contribution amount in the "deduction" section, TT comes back and states with an on-screen dynamic string of text that I have a penalty of 60$, ie $1,000*6%.
2- However, if I go back to 'explain my taxes => other taxes', I do not see a $60 penalty. Instead, I see $30, which implies that the 6% penalty is applied to the closing balance. ($500*6%).
[Updating my own post]: I talked to an online specialist who indicated that the second approach is the correct one. I am leaving this here if others stumble upon the same issue in TT or hear differently.
