Last year, we made a $7k Roth contribution prior to tax due and because of AGI, it was not allowed so we moved the $7k out of the Roth and received a form 1099R saying it was not taxable. Then this year the above happened. When we put in the $7000 Roth IRA contribution our taxes decreased. I thought a Roth IRA deduction would not affect the taxes as it is after tax funds.
