@dmertz
Following this and couple of other threads, I have mostly solved my issues. One last explicit detail remains:
My 2018 return was prepared by a tax attorney but he is non responsive now. So I am doing it on my own.
Situation is exactly the same - in 2018 I contributed to 5500 to Roth IRA but my income was too high.
So I have already taken the money out through Vanguard in 2020 Feb. I have also paid the 6% penalty in 2019 return. Now I need to deal with 2018 return - few questions about that:
1. I have completed the form 1040-X and 5329. As indicated in 5329, I also completed schedule 4. Original 2018 return did not have schedule 4. Is this right?
2. Now, following schedule 4, do I need to create a new 1040 also and duplicate all numbers from old 1040 to this but add the additional 330 tax?
3. If answer to question 2 is Yes, then I can easily show the tax owed. But how do I indicate that I already received a refund. i.e. what should be answer to the questions 16 and 19 be? Original amounts of now just 0s and show additional tax?
Say, in 2018 originally I withheld 3000$ in tax while my tax liability was $1000, so I got $2000 refund.
Now, with this calculation, should I indicate the $3000 withholding? Of course I dont want to get paid twice and dont want to make a mistake. 🙂
In this example, the intent is to indicate my liability SHOULD have been $1330, given I got $2000 refund last year, I just need to pay the $330 now.
