OK, so now I am completing the process of filing an amended 2021 return. Recap: in 2021 I contributed 7k to my Roth IRA not realizing I was not eligible to do so. In 2022 I had the 7k moved to a non-retirement account along with about $500 in earnings. My broker issued a 1099-R showing the $7500 distribution, with the $500 being shown as the taxable amount. For some reason, Turbotax will not correctly load my 2021 tax file but I did see that it used Form 5329 to calculate the tax owed, which was 10% or $50. So... I went on the IRS website and manually created a 1040-X, including form 5329, and Schedule 2 - Additional Taxes. I think all that is right.
My question is, how do I now handle the state portion? I have nothing to transfer over from federal because I did it manually. I don't mind having to do the state manually too, but how do I calculate the amount I owe due to the $500 taxable distribution??
Thanks!
