Roth IRA contributions

[sw16]

Helping son with taxes.  He opened a Roth IRA in 2020.  As part of this he contributed $6000 in 2020 that was characterized as 'for a prior year'.  He then also made a $6000 contribution in 2020 for that year.

When completing the tax form, we put he contributed 6000 for 2020 but when it asks if he opened it in a prior year and did he make contributions should we say 'yes' and add the $6000?  Technically he did not open prior to 2020, but the first contribution is characterized as 'for a prior year'.  

Thanks!

[macuser_22]

You have up to the due date of the tax return (now May 17) to make a 2020 IRA contribution.   That would be entered in the 2020 IRA contribution section and will be  based on the 2020 earned income even if made in 2021 for 2020.

[sw16]

My question is what do I do about the $6000 he contributed in 2020 ‘for a prior tax year’.  Do we enter that anywhere? Technically he put $12000 in his Roth in 2020 with 1/2 of that for 2019.  I don’t know if that needs to be reported somewhere...maybe it doesn’t?  We were going through the guide me questions and it asked if he opened up a Roth IRA prior to 2020,  I am not sure if he should answer Yes and then record the $6000 as a 2019 prior year contribution?  

[macuser_22]

A Roth contribution *for* 2019 can only be entered in a 2019 tax return, but it is not required - it is only for information.

A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

[bchrist771]

ROTH IRA are not deductible so it would be information only