I made a contribution of $6000 from my bank account to my Roth IRA on 4/17/2020. But later I found out my Adjusted Gross Income is about $220K (>$206K for joint filers). So I am not eligible for the annual $6000 Roth IRA contribution limit. To avoid the 6% excessive contribution penalty, I took that $6000 out from Roth IRA back to my bank account on 12/28/2020.
Now I received a 1099-R showing I have an early distribution, which counts as my income. According to TurboTax, it increases my Federal Tax Due a lot. I mean this doesn't make sense, right?
