2018 Roth IRA penalty amended return

Forum|Forum|6 years ago
September 26, 2019
2 replies
20 views

I received an email from Turbo Tax stating I should file an amended return because "Amending return to remove the additional tax incorrectly calculated on 1099-R distribution converted to Roth IRA." It was stated in the email that I overpaid my taxes, and this amendment would gain me a refund. When I followed the instructions, I ended up with a federal refund of $100, but a Minnesota state BILL for $84! Is this right? Why would federal give a refund, but state require a payment? Plus, it's a lot of hassle for a new $16 refund.

Any thoughts?

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DoninGA

Level 15

Call the toll free number in the email you received or the following support FAQ for assistance from a tax expert.

See this TurboTax support FAQ for the 2018 Roth IRA penalty - https://ttlc.intuit.com/community/tax-topics/help/2018-roth-ira-penalty/01/855040

dmertz

Level 15

The MN tax due on the amendment must be for an unrelated reason. The issue related to the Roth conversion has only to do with a federal early-distribution penalty inappropriately assessed on federal tax returns filed early in the filing season. This issue cannot have any effect a MN tax return.

Compare your original and amended MN tax returns line by line to see where the difference is being introduced.