I mistakenly opened Roth IRA with EARNED INCOME. I withdrew the money and received a 1099 to report as Income. How do I report thisom my tax return?

[rlmiddleton]

I am 78, retired with no earned income. If I report the withdrawal to IRS it will to be taxed but I have already paid taxes on the contribution,

[fanfare]

return of excess contribution:

before tax filing date including extension: positive earnings allocable to the excess are included in income on 1040 Line 4b for the year of the contribution. negative earnings are ignored; in any case, for purposes of basis, consider the original contribution amount as returned.

NOTE: You must request the custodian to do this for you.

if you made a withdrawal on your own you have not acted correctly.

@rlmiddleton 

[rlmiddleton]

No I did not get an answer that resolved my problem.

I opened a Roth IRA with $7500 of UNERNED INCOME in which income taxes have already been paid.  I withdrew that money and closed the IRA.  I now have a 1099-R that lists that money as income and will be taxed accordingly.  My question is how do I handle that 1099-R entry on my 2024 tax return to avoid paying taxes a second time.

Thank you for your time!!

[rlmiddleton]

I now realize that I did not handle that correctly.  How do I handle it after the fact?

[VolvoGirl]

  I'll page someone who knows more  @dmertz