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tax_payer4
Returning Member

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

I made an excess contribution to Roth IRA in 2021. I withdraw it from Roth IRA in July 2022, after 2021 tax filing but before tax extension deadline. There are no earnings from the excess contribution. How to report this removal in the 2021 tax amend?  The 1099-R form about this withdraw will be mailed only in January 2023. Should I simply create a dummy 1099-R in turbotax (box1 return amount, box2a zero, box7: J8) or use a 1099-R substitute?
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5 Replies

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

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@tax_payer4 

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

comment deleted

@tax_payer4 

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

since you had no positive earnings on your excess contribution,

there is no tax and no reason to amend your 2021 tax return.

Your 1099-R should show the Code for removal of an excess contribution.

tax_payer4
Returning Member

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

In IRS publication, it states explicitly:

"If you timely filed your 2021 tax return without withdrawing a contribution that you made in 2021, you can still have the contribution returned to you within 6 months of the due date of your 2021 tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Report any related earnings on the amended return and include an explanation of the withdrawal. Make any other necessary changes on the amended return."

 

Is it allowed to amend the 2021 tax return in 2023 when the 1099-R about the withdraw in 2022 is issued?

How to report the removal of 2021 excess contribution to Roth IRA in tax amend using turbotax?

If you enter the 1099-R when doing your 2022 tax return, TurboTax will direct you to amend your 2021 tax return.

Since there are no earnings there is no tax and nothing is changing  on your 1040-X

If you still insist,

when no dollar amounts are changing, leave lines 1-23 on 1040-X EMPTY.

Fill out the explanation.

There will be no withholding on your 1099-R so there is no reason to attach the 1099-R to Form 1040-X either.

 

Generally,

Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

 

You have a 1040-X with no amounts, no attached forms or schedules and no attached tax documents (you could attach the 1099-R).

 

@tax_payer4 

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