I have a question about excess contributions to my Roth IRA. When doing taxes in early 2023 for 2022, I discovered I was unable to make contributions to my Roth IRA because I ended up having to file MFS instead of MFJ as in past years. I was able to get a distribution of all of my 2022 contributions prior to filing my taxes in April 2023. In the deductions & credits section, I entered $6,996, the amount of the total Roth contributions for 2022, then entered $6,996, for contributions withdrawn before the due date. The total contributions shown on summary page then showed $0.00 for deductions for Roth IRA in 2022. In 2024, I received a 2023 1099-R showing a distribution of $5,730.91, because there was a loss in the total contribution.
So, prior to learning I could not make a Roth contribution since I had to file MFS, I had made $1,875.00 in contributions to my Roth IRA for the first three months of 2023. I stopped making the contributions for the remainder of 2023, since I didn't know if I would be filing MFJ or MFS for 2023. In 2024, it was again recommended that I file MFS for 2023, so I took a distribution of the $1,875.00 in 2023 excess contributions in March 2023 prior to the tax filing deadline. As mentioned above, in 2024, I received a 1099 for tax year 2023 that showed the total distribution of $5,730.91, a loss from the actual contribution made, thus there was no taxable amount due. I included the $5,730.91 distribution amount as income on my 2023 return since the 1099 said 2023. In addition, in the deductions section, I again answered all off the questions about Roth IRA. I entered the $1,875 for the contributions I had made for the first three months of 2023; for the question "Enter Excess Contributions for Prior Years, I entered $6,996 for the amount of excess contributions from 2022 (although I had already had taken the distribution of those prior to the 2022 filing deadline (as described above), and entered $1,875 for the amount of the 2023 contributions that were withdrawn before the filing deadline for 2023. On the 2023, the summary page for deductions showed $0 for 2023, however, showed $6,996 for 2022.
Fast forward again to 2025, I received a 2024 1099-R for the distribution of $1,875 in excess contributions of in 2023. The distribution amount was $2,500.73, greater than the $1,875 in contributions, so resulted in a taxable amount of $625.73. Since the 1099-R says 2024, I was planning to include the distribution amount reported on my 2024 taxes as income. Is this correct? Also, in the deductions and credits section, should I input the $1875 in the question Enter Excess Contribution - your excess Roth Contributions for Prior Years, or should I put $0 since I had answered they were withdrawn on the 2023 filing?
Also, I was wondering if I maybe should not have included the excess contribution amount of the $6,996 in the question for prior years on the 2023 filing since I had withdrawn them and included them on the 2022? If I shouldn't have included them, then I would need to file an amended return because it appears I overpaid taxes. Is this correct?
Thank you for your input. I appreciate any suggestions.
