You should enter the $6,000, as that is the amount that went into your account, if I am understanding you correctly.
Thanks for the reply @ThomasM125, let me clarify the situation a little more. To start off, I'm asking this because when filing this year, TurboTax is informing me I may need to amend my 2019 return; I was thinking I'd start with this situation to see if this is where I messed up.
From January 2019-December 2019 I contributed $6,208. February 2020 I removed the $208 excess contributions. So when TurboTax asks me what my Roth IRA contributions were for 2019, would I enter the $6,208 since the excess wasn't removed until 02-2020?
You should enter the $6,208, since you are going to report a $208 distribution in TurboTax in 2020. The program is going to do a calculation taking the beginning balance and subtract distributions you report in 2020, so you need an accurate beginning balance to make things work right.
Please keep your question on the same subject in the same thread.
About the only time that TurboTax will way you need to amend 2019 is if you enter a 1099-R with certain box 7 codes.
As I asked in the other thread - did you receive a 1099-R for the excess removal and what code is in box 7, what is in box 2a.
Sorry, these are different questions but they seem to have blended together. 0.00 and JP.
Code JP will do nothing on a 2020 tax return since the return can only be reported in the year that the contribution was for - 2019.
In your case it will also do nothing on a 2019 tax return because the ONLY thing to report is the taxable interest in box 2a. Since box 2a is zero, the Roth probably had a loss and not a taxable gain so there is nothing to report as taxable income on your 2019 return either.
If the excess contribution carried to 2020 then yiu can remove it in the 2020 IRA interview since it is gone.
Thank you, this is really helpful information @macuser_22! So to amend, I would just add the 1099-R I received to my 2019 return and leave it off of my 2020 return? I'm not sure I understand the last part about the excess contribution carrying to 2020. Would I need to change my total contribution to $6,000 on my 2019 return as well?
@natethebait6600 wrote:
Thank you, this is really helpful information @macuser_22! So to amend, I would just add the 1099-R I received to my 2019 return and leave it off of my 2020 return? I'm not sure I understand the last part about the excess contribution carrying to 2020. Would I need to change my total contribution to $6,000 on my 2019 return as well?
Unless there was Federal tax withheld (there should not have been) in box 4, do not even enter it on the 2020 return.
"I'm not sure I understand the last part about the excess contribution carrying to 2020."
If you transferred the 2019 data to the 2020 tax return then any outstanding 2019 excess would carry to 2020 on the IRA Information worksheet.
Since there is no taxable income and it will not chance your 2019 tax at all, just ignore it. The IRS does NOT want amended returns that do nothing.
"Would I need to change my total contribution to $6,000 on my 2019 return as well? " No because you actually DID contribute more than $6,000 - that is why you had an excess in the first place. You report the actual contribution, not what it should have been.
So I will leave my contribution as $6,208, then the next box is "Enter Excess Contributions" - If I enter $208 it shows I owe the feds $12 because of the 6% tax on the excess. But I believe I would put $0 since I withdrew it before my tax return was due or is this where I'd put the $208? And finally it shows me "Contributions Withdrawn Before the Due Date" - I assume I'd also put $208 here.
I really appreciate the help, this specific situation has been stressing me out and you're information is really helping me get squared away.