Excess Roth IRA contribution

[bolinda]

I contributed $7000 for my 2020 Roth IRA and learned in 2021 that my 2020 AGI was too high.  I withdrew the $7000 plus earnings and was under the impression I would not have to pay a penalty if I did so before the tax filing deadline.  Turbo Tax calculated that I owed the penalty.  Is this so?  Please advise and thank you.

[macuser_22]

---

@bolinda wrote:

I contributed $7000 for my 2020 Roth IRA and learned in 2021 that my 2020 AGI was too high.  I withdrew the $7000 plus earnings and was under the impression I would not have to pay a penalty if I did so before the tax filing deadline.  Turbo Tax calculated that I owed the penalty.  Is this so?  Please advise and thank you.

---

If you entered the contribution into TurboTax IRA contribution section then revisit that and delete the contribution because you did not make a contribution - it was returned.

You will receive a 2021 1099-R for the return of contribution.    If there were any earnings then those will be reported box 2a on the 1099-R and will be taxable in 2020 and probably require amended 2020 to report it.