In 2019, I made a contribution to my standard IRA. As I began to file my taxes, I realized that I wasn't allowed to make that contribution. I withdrew the funds as well as the appreciation in 2020. Where in TurboTax Deluxe 2019 can I find the section to deal with this situation?
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In the 2019 return you will only indicate you removed the contribution timely IF you even made the contribution entry at all which was not required.
On the 2020 return you will report the earnings if there was some to report ... wait for the 1099-R they will send in Jan.
@Critter-3 wrote:
In the 2019 return you will only indicate you removed the contribution timely IF you even made the contribution entry at all which was not required.
On the 2020 return you will report the earnings if there was some to report ... wait for the 1099-R they will send in Jan.
If this was a 2019 contribution removed in 2020 then next January you should receive a 2020 1099-R with a code "P" in box 7 with the returned amount in box 1 and the earnings in box 2a (and the IRA box checked if this was a Traditional IRA). That must be reported on an amended *2019* tax return because earnings are taxable in the year of the contribution, not the year returned. There would be nothing to report on the 2020 tax return at all.
As Critter said, the contribution itself should be removed from the IRA contribution interview on the 2019 return as if it was never made which will also remove it from the 1040 form and/or 8606 form if it was not-deductible.
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