Hi, when preparing the 2021 tax report last month, I realized I am not eligible to make RothIRA contributions in 2021. Here are the details:
1. I contributed $6000 to 2021 in Jan 2021 (I used to do such contribution every year).
2. When preparing the 2021 tax report last month (March 2022), I realized I am not eligible to make the contributions in 2021 because my MAGI exceeds the limit.
3. Then, I contacted my RothIRA account provider and removed the contribution (and the related tax). Since my RothIRA account did not have the gain till now (the stock market dropped in Q1 2022, they removed about $5200 from my account.) They mentioned I will not get 1099 form until Jan 2023.
Then, my question is, how can I fill the tax report this year? For example:
Should I mention I already contributed $6000 in 2021?
If yes, it seems I need to pay the penalty (based on the TurboTax form), but I already removed it before the tax deadline according to TurboTax's suggestions. Or, are there any other ways to mention I already remove the contribution if I report I contributed the $6000?
Or I should not mention I contributed $6000 in 2021 and just do it next year when I receive the 1099 Form from my RothIRA account provider?
Please advice. Thanks.
