Yes, you can use TurboTax to amend your tax returns but you will need to print and mail your returns since you can't e-file prior year amended returns. Please see How to amend (change or correct) a return you've already filed.
Yes, you will request a regular distribution (without earnings) to resolve the excess contributions from 2018, 2019, and 2020 since it is after the due date of these tax returns. No, you do not have to wait for Form 1099-R. You will get the 2022 Form 1099-R next year and this distribution will belong on your 2022 tax return.
You will have to pay the 6% excess contribution penalty for 2018, 2019. 2020 and 2021.
On your 2018 return (if you have the 2018 TurboTax Download version), you will enter the IRA contribution and TurboTax will automatically calculate the 6% excess contribution tax on Form 5329 part IV.
On your 2019 return, you will enter your 2019 contribution and then enter the 2018 excess contribution on the "Enter Excess Contributions" screen. TurboTax will automatically calculate the 6% excess contribution tax on Form 5329 part IV.
On your 2020 return, you will enter your 2020 contribution and then enter the 2018 plus 2019 excess contribution on the "Enter Excess Contributions" screen. TurboTax will automatically calculate the 6% excess contribution tax on Form 5329 part IV. For your wife enter the 2020 contribution and TurboTax will calculate the 6% penalty for her on her Form 5329.
On your 2021 return, you will enter the 2018 plus 2019 plus 2020 excess contribution on the "Enter Excess Contributions" screen. TurboTax will automatically calculate the 6% excess contribution tax on Form 5329 part IV. For your wife, you will enter her 2020 excess contribution on the "Enter Excess Contributions" screen and TurboTax will calculate the 6% penalty for her.
Steps to enter excess contribution on your 2021 return (the steps will be similar for the other years):
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2018 + 2019 + 2020.
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