2172759
My situation:
2020: Due to income limits, I overcontributed the entire $6K back in early 2020. Since then, it has grown to ~$7.3K. I have already recharacterized the entire amount with my brokerage. I have also already filed the taxes, so I need to amend them.
I am at the page: "Enter your Roth IRA contributions" Technically, my contributions were $6K, but if I put $6K in, it says I need to pay a penalty on the $1.3K earnings since it is technically "excess". If I put the entire contribution + earnings $7.3K, I don't run into the error anymore, but is that correct? It clearly says earnings. Otherwise, I'm not sure where else to put this info?
Also, if I am considering doing a backdoor roth, what steps do I need to do after to do this in TurboTax?
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Click this link for detailed instructions on How to Enter Recharacterized Roth IRA Plus Earnings.
This link has info on How to Enter a BackDoor Roth Conversion.
Yeah, I've gone through those posts, but it seems to be different in 2020 version. The steps seem to be different, and that specific individual has combined roth/traditional.
I know it is a long shot, but hoping someone has a step by step on how to amend in turbotax for recharacterization with earnings.
You will enter the recharacterization when you enter the contribution to the Roth IRA
If you decide to convert the amount in 2021 then you will get a 2021 1099-R in 2022 and enter these steps on your 2021 tax return:
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