Thanks macuser_22.
The basis on my 2019 8606 was not correct as it did not show my 2018 contribution. Not sure why. So in my current year return i changed the basis to 11500 and it corrected the total basis to 17500 and the added tax got removed.
Should I file an amended 8606 for 2019? Which form? Can I file just the 8606 alone?
In my 1099-R however, it shows 3 distributions of 17592, 6000 and 5.09. On the Form 1040 for 2020 I see that it included a distribution of 17597 out of which 97 is taxable but I do not see the impact of the 6000 that I had contributed by mistake and had got reversed and paid back to my account. It is shown separately on my 1099-R though and the total withdrawals are shown as 23597. How to make sure I acount for that 6000 correctly?
I also noticed that in my spouse's account, I think she contributed to a traditional IRA and then converted to Roth but the 1099-R statement shows only 11500 converted to Roth and 6000 are shown as direct contribution in the activity report for Roth. I am checking with my broker but this would mean that i should take money out of Roth (given that i am over the income limit) and pay penalty etc. Since I have not filed the return yet, I can withdraw it right away and just have to pay 10% penalty on 6000 and tax on any gains? IS that right? Is there a way to avoid this penalty given that I think she contributed to IRA first and then converted but I can't seem to find any audit trail for it.
Thanks again for your help,
Appreciate it
