I contributed to my Roth IRA account in 2018 and filed my taxes as such. Afterwards, I realized that I was ineligible to do so. I withdrew the contributions as well as their earnings. However, it now seems that I may have to file an amended tax return before October 15th, and I'm not sure what I need to do for that. Do I just file a 1040X that includes the earnings as 2018 income? If so, what sort of income is it and how do I determine the tax on it? Any advice you can offer would be much appreciated, thanks.
June 27, 2019 3:56 PM last updated June 27, 2019 3:56 PM Connect with an expert
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If you requested a "return of contribution" and the earnings, in 2019 then you will not receive the 1099-R reporting that until Jan. 2020. Since you received the return before the extended due date (Oct 15, 2019) you met the requirement. When you file the amended return (within 3 years from the original due date) is immaterial. There is no reason to amend now making up a "dummy" 1099-R form prior to receiving the actual 2019 1099-R in Jan. of 2020. (That 1099-R should have a code "JP" in box 7, the returned contribution in box 1 and the taxable earnings in box 2a.)
When you amend 2018 and enter the 1099-R with the code JP, then TurboTax will enter the box 2a amount as taxable income - the return of yiur own contribution is not taxable.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
