Thanks to both you and fanfare. Unfortunately, my earned income was only $2970 in 2020 (Covid) and apparently unemployment compensation doesn't count. To complicate matters, I've already contributed $6500 in 2020 towards my IRA, which I'll need to rectify. What is the best way to handle this? Do I make a corrective distribution before I file for 2020 and have my husband withdraw $2970 (plus earnings since deposited in 2019) from his IRA? Or should he withdraw the entire amount ($3164 + earnings)? How do I resolve this on the tax returns (currently amending the 2019 return and haven't yet prepared the 2020)?
Please help, I'm starting to freak out about this.
