Tax Refund Doubled After Doing Amending For Excess Contribution

[tomk0602]

So I did a timely withdrawal of Roth contributions in 2021 before filing. Got the 1099-R 2022 Just this Jan 2022.  Went back to amend taxes but for some reason the refund now keeps showing what’s seems like my taxes owed for 2021 as refund. On the 1040X page it shows the other taxes and then adds up with what my estimated payments made. I tried to go back to Deductions and Credit section to just delete all the federal estimated payments for all quarters so it seems that I owe $900 even though my 1099-R 2a taxable is zero since I just withdraw the excess with no gains or losses. I’m self employed 1099 no w2

[RobertB4444]

Is your 1099-R for 2021 or 2022?  If the year on there is 2022 then enter it on your 2022 taxes, not your 2021.

If the year is 2021 then there is some error with the calculation page.  Your return should have no change.  Adjust your estimated tax payments back to what they were and then look to see what the system is changing.  Perhaps something on your return has changed due to a change in tax rules?  It's weird, but it happens.

@tomk0602 

[tomk0602]

My 1099 R shows 2022 I did it in the c 2022 tax return and it advised me that I need to amend my 2021. 

i went to the 2021 and without even changing anything the federal refund on top already showing close to the amount of my tax due for 2021 as a refund. When I  amend I wasn’t sure what I need to amend so I also chose 1099-R and it will ask me if the form sores 2021 or 2022 and I choose 2022. I did a pdf preview it shows some net changes that means I owe $900 even though I don’t have any taxable amount in 1099-R. Further down it for some reason adds my tax liability and my estimated tax payment I made quarterly together 

[AmyC]

Since you did the timely withdrawal before filing, I want to believe that your 2021 is correct. You state that you pulled out the excess before filing and your form shows no taxable income. This means you did not even have interest earned on your excess contribution.

I suggest getting more familiar with the ROTH and requirements so you can determine what you actually did, what is required, and if anything needs to be done. See when income must be included at ROTH Accounts | IRS. Otherwise, we need to know more to help.

Please see one of my favorite websites IRS Retirement Plans. Since you are self-employed, you have the ability to hide away much more than the ROTH allows. You may want to consider your other options. For example, a SEP IRA can go up to $61,000 - depending on income factors. 

The amended form, may have wonky numbers displayed but the form should be correct. The only thing to have changed would have been the ROTH related items- if needed at all.

[tomk0602]

based on what I have gathered I do need to file amendment to 2021 because there is a section where it says excess contribution under Roth where I think I’m suppose to fill in and during that time when I withdrew I was suppose to generate my own 1099-R and not wait for brokerage to send me the 1099-R. So for the 2021 instead of stating that I made excess I stated I made the allowable amount that I determine from TurboTax. The issue is I didn’t know what input to put if I made timely withdrawal all it prompted me was that I was subject to penalty and interest. 

Because right now IRS will be informed that I withdrew excess (I don’t think it shows what date on the form) with P. j . Code and no taxable amount show 0.00, I feel like IRS would expect some kind of documentation on 2021 (such as amended return) to sort out this. If I report it on my 2022 which I’m prepping now I would have to input the 1040X which definitely will alert IRS. But the issue is I don’t know if I need to if I did a timely withdrawal. 

[BrittanyS]

You can contribute to a Roth IRA after filing your taxes without having to amend your return.  During filing, you should have seen a question asking if you made or plan to contribute to a Roth IRA.  This is because you can contribute to a Roth IRA up to the tax-filing deadline.  For example, for the tax year 2022, you can make a 2022 Roth IRA contribution up to April 2023.  

You don't have to amend because the issuer will submit form 5498 to the IRS to report contributions, including any catch-up contributions made to your account.

One reason to amend, however, is if you want to check if you qualify for the retirement saving contribution credit.  This credit may or may not affect your return.  To check to see if you will benefit from the retirement savings credit, you can follow these steps:

1. Sign in to TurboTax
2. On the home screen, scroll down to Your tax returns & documents and select the year you want to amend
3. Select Amend (change) return, then Amend using TurboTax Online
   • If you're told to amend your return via TurboTax Desktop, follow the steps for TurboTax CD/Download below instead
4. On the screen OK, let's get a kickstart on your amended return, select the reason(s) you're amending and Continue
5. When you reach Here's the info for your amended federal return, select Start next to the info you need to change
6. Continue through the screens, and make the changes you need to make
7. Click on Deductions & Credits
8. Retirement and Investments, select Retirement Savings contributions Credits
9. Review the credit to see if you will benefit from amending the return

@tomk0602