Yet another Excess Roth IRA Contribution Tax Return Question

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SC Anteater
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Joined: Thu Jan 10, 2019 5:50 pm

Yet another Excess Roth IRA Contribution Tax Return Question

Post by SC Anteater »

I have read this thread : viewtopic.php?t=347101 but am still unsure of how to handle the 2021 1099-Rs I have received. My situation:

Spouse and I both overcontributed to Roth IRAs in 2020. The excess contribution (plus earnings) was removed prior to 04/15/21 and reported on my 2020 Tax Return as follows:

line 4a $12,298
line 4b $ 1,658
Form 5398 (his & hers) - $70 penalty each

So I believe I have taken care of any income tax owed on the earnings of $1,658 and paid the penalty of $140.

I have 1099-$ forms from Vanguard for 2021, 2 for spouse (? different funds?) and 1 for me. Box 7 codes are J,P on 2 of them and 8,J one one of them. When I entered these all into the tax software my income tax due increased marginally because I have $80 in taxable income from the 8,J distribution and it looks like it wants to put $2,580 on line 4a as IRA distribution, which I don't understand because I reported the withdrawals on 2020's tax return. Do I disregard these 1099-Rs because I handled everything in 2020? Something seems wrong.
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