How to Amend Tax Return after excess Roth IRA contribution

[anovet]

I contributed to my Roth IRA account in 2018 and filed my taxes as such. Afterwards, I realized that I was ineligible to do so. I withdrew the contributions as well as their earnings. However, it now seems that I may have to file an amended tax return before October 15th, and I'm not sure what I need to do for that. Do I just file a 1040X that includes the earnings as 2018 income? If so, what sort of income is it and how do I determine the tax on it? Any advice you can offer would be much appreciated, thanks.

[macuser_22]

If you requested a "return of contribution" and the earnings, in 2019 then you will not receive the 1099-R reporting that until Jan. 2020.   Since you received the return before the extended due date (Oct 15, 2019) you met the requirement.   When you file the amended return (within 3 years from the original due date) is immaterial.     There is no reason to amend now making up a "dummy" 1099-R form prior to receiving the actual 2019 1099-R in Jan. of 2020.  (That 1099-R should have a code "JP" in box 7, the returned contribution in box 1 and the taxable earnings in box 2a.)

When you amend 2018 and enter the 1099-R with the code JP, then TurboTax will enter the box 2a amount as taxable income - the return of yiur own contribution is not taxable.

[anovet]

Perfect, that all makes sense, thank you!

[caroladkr]

I followed your instruction on how to amend my 2018 tax return how ever it increased tax due by $ 1,232 for an excess taxable amount of $ 606.78. The additional tax +penalty should have been no more than $ 128 if that.

What I did was open my 2018 turbo tax return added return of my already taxed amount of $ 13,607 in box 1 and 606.78 in 2a (Both me and spouse). The $ 13,607 was gross distribution and the gain was $606.78.

It may be due to the 1099-R issued for 2019 with the codes of J,P. The over contribution and the gain was returned in 2019. 

What do I need to do? Buy a new Turbo tax disk or make the changes in ink on the orginal 2018 return.  have included the 2019 1099-R on my 2019 return.

[ThomasM125]

I did what you said in my program and only the $607 showed up as taxable. I suggest you delete the entry and try it again. Pay special attention to the instructions to make sure you enter everything correctly.