(deleted)

[tabula101]

(deleted)

[fanfare]

return of excess contribution or allowed contribution:

The custodian figures any allocable earnings.

before tax due date including extension: positive earnings allocable to the excess are taxable on the Line 4b for the year of the contribution. negative earnings are ignored; in which case, for purposes of basis, consider the original requested amount as returned.

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When contributing, report what you actually contributed, not what you might have contributed in some alternate universe.

@tabula101 

[tabula101]

@fanfare 

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@fanfare wrote:

return of excess contribution or allowed contribution:

The custodian figures any allocable earnings.

before tax due date including extension: positive earnings allocable to the excess are taxable on the Line 4b for the year of the contribution. negative earnings are ignored; in which case, for purposes of basis, consider the original requested amount as returned.

--

When contributing, report what you actually contributed, not what you might have contributed in some alternate universe.

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Hmm, but the TurboTax instructions seem to imply otherwise. Here are the instructions on how to correct an excess Roth IRA contribution, taken from 2023 TurboTax online:

There are several options available for correcting excess contributions. ... The options available include:

...

2. Withdraw the excess (including any money you earned on it) before the filing deadline for your tax return. If you do this, you'll need to correct the amount you entered in TurboTax as your contribution.

Using my 2022 Roth IRA contribution as an example, this seems to imply that, if I accidentally contributed $6,000 (all of which was excess) and then later withdrew all of it, then I should enter my effective contribution to 2022 Roth IRA as $0 (not $6,000).

Are the instructions wrong or am I misinterpreting them?

[fanfare]

when you withdraw an excess Roth contribution correctly , there is then no excess.

If you withdraw an allowed contribution in full, then there is no contribution..

Therefore, your Roth contribution was zero not $6,000.

That's a book-keeping entry in TurboTax, Roth contribution don't go on your tax return unless your AGI income is low enough to get a retirement savings credit.

My post above says nothing about this.

If you took that saving credit ion your previously filed tax return, then you have to amend to give it back.

The part you have in bold applies to Traditional IRA contributionss that are reported.

they must also be repealed.

I presumed that goes without saying.

@tabula101