Filing 2021 1040-NR amended tax return for excess Roth IRA contributions

[rewashp]

Hello,

I had excess contributions in my Roth IRA for year 2021 which I discovered in 2023. I filed my taxes as non-resident with 1040NR with Sprintax software in 2021. I want to file an amended tax return for 2021 to pay the 6% penalty and cannot use Sprintax for amending my taxes. Can I use Turbotax to file amended tax return for 1040NR and if not, which forms and documents do I need to compile to file the amended tax return for 1040NR?

[DanaB27]

No, you cannot use TurboTax to amend Form 1040-X.

You will need to file 2021 Form 5329 Part IV for the 6% penalty. Enter the excess contribution for 2021 on line 23 and fill out lines 24 and 25.

Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. The tax can't be more than 6% of the combined value of all your IRAs as of the end of the tax year.

You will need to remove the excess contribution to avoid paying the 6% in future years. You will request a regular distribution since it is after the due date of the 2021 tax return.

[rewashp]

@DanaB27Do I need to include the following documents with the amended return: 1040-X, 1040-NR, W2 and copies of other income documents or just the new form like 5329 form?

[DanaB27]

The instructions for Form 5329 state: "If you are filing Form 5329 for a prior year, you must use the prior year's version of the form. If you don’t have any other changes and haven’t previously filed a federal income tax return for the prior year, file the prior year's version of Form 5329 by itself (discussed earlier). If you have other changes, file Form 5329 for the prior year with Form 1040-X, Amended U.S. Individual Income Tax Return."