@bobsmith wrote:
Hello,
When preparing my 2021 tax return, I have "additional tax" related to excess Roth IRA contributions. Tracing through the documentation, it comes from the 2020 tax return "additional tax" for excess Roth IRA contributions. This is related to a $2000 excess contribution made in 2019 but was recharacterized for tax year 2019 in February 2020 prior to filing the 2019 tax return.
At the end of the day, I believe I should not be assessed an additional tax in 2020 or 2021 because after the timely recharacterization there was no excess contribution. How do I fix this?
Thanks,
Ryan
You probably failed to enter the recharacterization in the IRA contribution section on your 2019 tax return so it carried forward.
Go to the IRA contribution and select Roth contribution for you. You need not enter any amount for a new contribution, just click through for the excess questions. The carry forward excess should automatically show and you can zero it out to eliminate it.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
