Hi,
In 2023 I made the max Roth IRA contribution, but when I was preparing my taxes, TT helpfully let me know that, due to lots of investment income that year (yay), I had surpassed the threshold for full contribution, and that I would need to get ~$5K of my 2023 contribution returned to me as an excess contribution. No prob - my brokerage firm completed my return of excess request before 04/15/24.
Fast forward to this year, as I'm completing my FY24 taxes. I received a 1099R with codes JP for the $5K in Box 1 Gross Distribution (and ~$600 in Box 2a for Taxable Amount and $65 in Box 4 for Federal Income Tax Withheld). I enter in these amounts for my 2024 taxes, but as TT is walking me through, it tells me I need to amend my 2023 taxes.
When I go back into TT to amend 2023 taxes, I "revisit" my 2023 1099R entries and add this form (labeled as a 2024 form (which makes sense, since that's when I get the 2023 excess contribution returned to me) but which covers a 2023 excess contribution). What is throwing me for a loop is that my 2023 amended tax form now says I owe ~$500 in taxes.
Since I entered in the data on this 1099R form in both my 2024 return and the amended 2023 return (and as both sets of numbers show up in the "income" section of both of those returns), I just want to understand/verify that I am not getting dinged in both 2023 and 2024 for that Box 1 Gross Distribution of $5K?
Any guidance is much appreciated...
