Hello,
I have a question about correctly reporting two 1099-Rs on my 2022 return, and possibly amending a previous return (2021).
In 2021, I contributed $5,700 to a Roth IRA. While starting to do my taxes in January 2022 for tax year 2021, I realized I should not have contributed to the Roth due to the income limit. I immediately connected with the institution of my Roth and withdrew the excess contribution (+/- gains/losses) before the tax deadline (there were no gains, only losses: I received ~$5,200). Subsequently, also before the tax deadline for TY2021 (April 2022), I contributed the withdrawn money (+ a little bit to add up to $6,000) to a traditional IRA, as a contribution toward 2021. This money is hence non-taxable, as it has already been taxed, so this is a non-deductible contribution. Later in 2021, I rolled over the 6k non-deductible traditional IRA contribution (+ gains of 66cts) to the Roth IRA (doing a backdoor Roth).
For TY 2021, I filed using Turbotax in April 2022, and included form 8606, filling out Part I, acknowledging my 6k non-deductible contribution to the traditional IRA. I am under retirement age and filed jointly for 2021.
This year, 2023, I received two 1099-Rs: one for the excess withdrawal (year on doc: 2022, 5.7k, resulting in 5.2k due to losses) showing code JP, and one for the IRA rollover (year on doc: 2022, $6,000.66) showing code 2 (state/fed tax withheld). In my Turbotax return, I first added the 6k 1099-R and indicated that I "converted all of it to Roth IRA". Then I also added my second 1099-R for the 5.7/5.2k, though the system said I may need to adjust my 2021 return. The system now shows a total of ~11.2k for Roth IRA contributions, which seems odd to me, as I only contributed 6k, really, and it was toward 2021.
I am still under retirement age and filing jointly for 2022.
My questions are:
(1) Did I enter my 1099-Rs correctly?
(2) Why do I need to amend my 2021 return, as my 1099Rs for the excess withdrawal have the TY 2022 on them? As per my understanding and the instructions in form 5329, I understood that withdrawing an excess contribution prior to the filing deadline treats it as though it never happened. - How is this represented in tax filing?
(3) If I do need to amend, what exactly am I supposed to change?
Thanks in advance!
