Do I make an amendment for 2023 taxed because I recharacterized an excess contribution for Roth IRA?

[em451]

I filed my 2023 taxes in March 2024 but then learned that I was no longer eligible to contribute to a Roth IRA because married filing separately. 

I just recharacterized my 2023 contribution to a traditional IRA in July 2024. I will convert it from Traditional IRA to Roth as soon as I can. 

Do I need to amend my 2023 taxes? If so, what do you recommend? I read the forums but haven't been able to fully understand. 

[fanfare]

recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.
You must use a trustee-to-trustee transfer before the due date April 15,2024 or Oct 15, 2024 if 1040 was timely filed..
You will instruct trustee to calculate the allocable earnings.

report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.

===

You didn't state when the contribution was made.

IF your contribution was in 2023 you need to  amend to specify if it is non-deductible (2023 Form 8606)

or deductible (2023 Schedule 1 Line 20)

@em451 

[dmertz · Accepted solution]

Yes, you must amend your 2023 tax return to reflect the resulting traditional IRA contribution either as deductible on Schedule 1 line 20 or on Form 8606 as nondeductible.  On Form 1040-X you must indicate that it is "Filed pursuant to section 301.9100-2" as described in IRS Pub 590-A.

[fanfare]

according to my reading of 590-A

if the Roth contribution was made in 2024 for 2023, you don't amend your 2023 tax return.

@dmertz 

[dmertz]

@fanfare , I think you are confusing this with a return of contribution.  Recharacterizing a 2023 Roth contribution turns it into a reportable 2023 traditional IRA contribution which must be reported on the 2023 tax return.  (A deductible traditional IRA contribution doesn't have to be reported, but if it's deductible, why not take advantage of the above-the-line deduction.)

[fanfare]

• Report the recharacterization on your tax return for the
  year during which the contribution was made.
• Treat the contribution as having been made to the
  second IRA on the date that it was actually made to
  the first IRA

 2022 Pub 590-B Page 28 "Recharacterizations"

@dmertz 

[dmertz]

With regard to contributions, section 219(f)(3) creates a legal fiction that deems a contribution for the previous year made by the due date of the tax return for that previous year as having been made on the last day of that previous year.

[fanfare]

You're saying that

on the date that it was actually made to
the first IRA

is not really the actual date but instead an imputed date established by the Code,

If that's so, the elaborate wording in Pub 590-A could use clarification; if not unnecessary..

By the way, what taxpayer, consulting Pub 590-A,  would know about Section 219(f)(3)   ??