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Hi, Can someone please help me?
In 2020 I accidentally contributed to Roth but was over the income limit.
In Jan 2021, realizing this, I had Vanguard re-characterize 6K+ gain 1K - but they said I don't have to worry about this for filing my 2020 taxes since this is done in 2021.
Now, I have two 1099-R; one for Roth 7K (that was re-characterized) and then one for TIRA 13K (my "contributions for 2021" even though part was for 2020)
Question:
1. When entering in my taxes for 2021, when I am asked "How much did you contribute in 2021?" - Do I put 6K or 13K?
2. When I put 13K it says that I have a penalty for excess 7K contributions and I need to remove it? or do I put 6K (which increases my taxes by a lot due to the 1099R's)
3. It says I have to amend my 2020 taxes, which I enter, and since I have gains of 1K - I owe 360.00 for my 2020 taxes, this sounds correct.. which means I should have no penalties/taxes in addition for 2021 correct?
Thank you in advance!
In 2020 I accidentally contributed to Roth but was over the income limit.
In Jan 2021, realizing this, I had Vanguard re-characterize 6K+ gain 1K - but they said I don't have to worry about this for filing my 2020 taxes since this is done in 2021.
Now, I have two 1099-R; one for Roth 7K (that was re-characterized) and then one for TIRA 13K (my "contributions for 2021" even though part was for 2020)
Question:
1. When entering in my taxes for 2021, when I am asked "How much did you contribute in 2021?" - Do I put 6K or 13K?
2. When I put 13K it says that I have a penalty for excess 7K contributions and I need to remove it? or do I put 6K (which increases my taxes by a lot due to the 1099R's)
3. It says I have to amend my 2020 taxes, which I enter, and since I have gains of 1K - I owe 360.00 for my 2020 taxes, this sounds correct.. which means I should have no penalties/taxes in addition for 2021 correct?
Thank you in advance!