In March of 2022, I made $7000 contribution for my 2021 IRA and in July of 2022 I made another $7000 contribution for my 2022 IRA. Now the 1099-R shows total $14000 IRA contribution. In Turbotax I was told that I made excess contribution and I need to pay 6% penalty. In Turbotax where can I show the two contribution are for two different year? Thanks!
Only the $7,000 contribution for 2022 is to be entered under Deductions & Credits in 2022 TurboTax. The $7,000 traditional IRA contribution for 2021 was reportable on your 2021 tax return either as a deductible contribution on Schedule 1 line 20 or on Form 8606. If you failed to do so, you must amend your 2021 tax return to add that. If nondeductible, the amount that appears on line 14 of the 2021 Form 8606 carries forward to line 2 of your 2022 Form 8606.
The $14,000 distribution reported on the Form 1099-R was apparently a Roth conversion. That gets entered under Wages & Income and you'll indicate that you moved some or all of the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then indicate that you converted $14,000 to Roth.
Please clarify the form that you are entering in TurboTax. You get Form 1099-R when you receive a distribution.
Thanks for yoru reply! I only got one 1099-R but it include both contribution togeth. It only shows one number of the total contribution ($14000).
Thanks Fanfare! Yes, it is distribution. The code is in box 7: Distribution code(s) 2; IRA/SEP/SIMPLE (X). I think the problem is that it put the 2021 and 2022 into one 1099-R.
Only the $7,000 contribution for 2022 is to be entered under Deductions & Credits in 2022 TurboTax. The $7,000 traditional IRA contribution for 2021 was reportable on your 2021 tax return either as a deductible contribution on Schedule 1 line 20 or on Form 8606. If you failed to do so, you must amend your 2021 tax return to add that. If nondeductible, the amount that appears on line 14 of the 2021 Form 8606 carries forward to line 2 of your 2022 Form 8606.
The $14,000 distribution reported on the Form 1099-R was apparently a Roth conversion. That gets entered under Wages & Income and you'll indicate that you moved some or all of the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then indicate that you converted $14,000 to Roth.