Do I need to amend last year's tax return due to recharacterization of Roth IRA contribution?

[macuser_22]

A 2016 1099-R with a code "R" would only get entered on a 2015 tax return and would have no effect since the recharacterization must be done in the IRA contribution section that you seem to have already done - just keep the 1099-R for your records.

[GC76]

Thanks! Yes my 2015 return has a Form 8606, then a blank line on 15a on the 1040 but the following explanation for line 15a:
Date of the Original Contribution:
Date of the Recharacterization:
The Amount Recharacterized):
The Amount Transferred (Recharacterization plus earnings or losses):
Reason for the Recharacterization: overcontribution

Since this year Turbotax automatically downloaded and entered all my 1099 forms from my bank, it automatically downloaded and entered the 2016 1099-R, which is how it prompted me I may need to amend last year's return.  Should I leave the 1099-R info in there, or is it better to delete it from the 2016 return altogether?

[macuser_22]

It does not matter since the 2016 software will totally ignore the code R 1099-R.   It does not get sent to the IRS either in 2016 or 2015 since no 1099-R without box 4 tax withholding does not get sent to the IRS.

[Anonymous]

I am in a similar situation (for 2015 and 2016) but i have a different question.

I contributed $5500 to Roth in 2015, got married in December and because of the combined income, i was no longer eligible for Roth contributions. Vanguard suggested that they recharacterize this contribution into Traditional and convert it back to Roth. This happened before tax filing in 2016 and Form 8086 captures this correctly.

I also contributed $5500 to Traditional for the year 2016 and converted it to Roth.

I received a 1099-R for 2016 with $11,000.

I am entering $5500 was contributed to Traditional for 2016 and was converted to Roth so that doesn't have any tax implication but the other $5500 (of the $11,000) is unaccounted for and turbotax says i owe ~$2000 taxes on them.

How do i handle this situation in turbotax.

[fanfare]

You should start your own thread on this situation. Of course you will owe tax if you cannot convince TurboTax it was a tax-free action.

[Anonymous]

@fanfare thanks for the suggestion, i created a new thread here: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3884737-2015-roth-ira-recharacterized-to-traditional-in-2016-befor...>