CarloP
New Member

Retirement tax questions

I overcontributed to my ROTH IRA in 2018 and requested a refund of excess contributions. I just received my 1099-R in 2020. So, I am amending my 2018. I am using H&R Block, which hopefully is somewhat similar to TT. Since this was a return of contributions for 2018 received in 2019, it tells me NOT to include the 1099-R info in "Retirement Income", and instead enter it in "OTHER" income. Here it clearly prompts me to include return of contributions made in 2019 and received in 2020. I did that, showing the total withdrawal as well as the taxable earnings. When I get to the IRA contributions page, it clearly tells me that the earnings will be taxable and that I will be subject to a 10% early distribution  penalty because I am under age 59 1/2. No problem so far.  Then it asks if the withdrawal was covered by any of the typical exceptions. I checked the NO box. Still, no matter what I do, it tells me that my penalty is 0.00.  I know that I need to pay takes on the earnings and should be subject to the 10% early distribution penalty. But it excludes it under FORM 5329 Part I, line 2. So the penalty is zero.  How do I need to do to get it to calculate the 10% penalty?  Thanks!!