I owe tax of $3.83 for an over-contribution of my Roth IRA in 2024. Do I have to amend my 2024 tax return since it is such a small amount?

[SJH57]

I over-contributed to my Roth IRA in 2024 by $85. In 2025, I contacted the investment firm and informed them of the over-contribution, For tax year 2025, I received a 1099-R for the withdrawal of $88.83 ($85 over-contribution, and $3.83 interest). Turbo Tax states that I need to submit an amended 2024 tax return to account for $3.83 of interest. This seems like alot of work for such a small amount of interest and tax owed. How can I avoid amending my 2024 tax return? thank you.

[fanfare]

what is the tax on $3.83 additional income. ?

Use common sense.

@SJH57 

[SJH57]

@fanfare  To properly account for the interest (which was accrued in 2024), TT is recommending I amend my 2024 return, but given that (as you pointed out) the amount of tax on that amount is tiny, seems like a lot of work for such a small amount. Entering the 1099-R I received for 2025, doesn't help because not only was no tax withheld, but the form uses the codes P and J for Box 7 - code P states that the tax for the interest will be accounted for on the previous years return, so it's no enter the 1099-R on 2025 return.  In retrospect, I wish I had created my own 1099-R when I was filing my 2024 return and then the over contribution and interest would have already been declared.

Am I assuming correctly @fanfare that by saying "use common sense", you are suggesting (since the amount of interest is so small), that I don't bother amending my 2024 return?  thanks for your response.

[RobertB4444 · Accepted solution]

The IRS has been notified about that interest amount and they may also just adjust your tax return without you ever needing to amend it.  But certainly I would not amend a tax return for an amount that small unless the IRS sent me a letter requesting that I do so.