Slightly different question regarding form 5329.
In 2021 I found I had a $144 excess contribution to my Roth for my 2020 taxes. I removed it and the earnings ($13.17). I entered the 1099-R data as if I had received one ($157.17 in box 1, $13.17 in box 2a, codes JP in box 7 and indicated the 1099-R was for 2021. Everything matched when I actually got the form this Jan). TT created form 5329 for the excess and I paid tax on the earnings of $13 rounded down. (I'm over 59 1/2 so no penalty on the $27 withdrawal)
Thank you to all the helpful people on these forums for helping me with that process.
Now 2022 is here and I have another much smaller $27 excess contribution to my Roth for 2021 (I quit making contributions last Feb so this will be the last time I have to deal with this). I removed the $27 excess plus earnings of a whole whooping .38 cents! I entered the 1099-R info as if I'd received it just like last year.
But this time TT Did Not generate a form 5329.
Is this because the earning were only .38 which would be rounded down to zero? Therefore no taxable earning and a 5329 is not needed? I don't want to click file and find out 5239 was needed?
FYI The $27 was added to Form 1040-SR line 4a Ira Distributions, but was not included in the taxable amount on line 4b so I know the 1099-R info is in there.
