I had a recharacterization of $1086.97 from a ira to a roth ira. The rechacterization was made on 3/4/2024 for an IRA contribution of $1040 made on 12/13/2023. The earnings would be $46.97. All the information was on a 2024 1099-R. Entered into Turbotax 2024 and got the following messages: (1) "It looks like you may need to amend your 2023 return." (2) "Here's why: Your 1099-R reports earnings on a contribution you made in 2023. This information needs to go on your 2023 return." and (3) "If you've already filed your 2023 return, then you'll need to amend it. Here's How". I click on the "Here's how" link and get "not found", so no help.
First question is why do I have to file an amended 2023 return. If I had put the $1040 in the roth ira to begin with, the earnings would have been non-taxable. Also the majority of the earnings would have been in 2024.
Second question is where on a 2023 amended return, do I report the $46.97 earnings. Do the earnings have to be prorated between 2023 and 2024? If so, where are the 2024 prorated earnings reported on the 2024 tax return (have not filed yet).
I will have a similar situation in 2024. I am going to recharacterize about $1200 for contributions made in 2024. The recharacterization will be about $1260 ($1200 contributions plus estimated $60 earnings). Do the $60 earnings have to be reported and if so on which form and where?
Thanks for any help.
