Hello all,
I had filed our taxes before the April 15 deadline (April 6, 2024 to be precise; status: married filing jointly; our age ~42 years) we already received the tax refund for 2024, end of April)
Around April 18, 2024 I was notified by my IRA brokerage that there was an over-contribution to my ROTH IRA of $850 for the year 2023. With our 2023-AGI, we are not qualified to make any ROTH IRA contributions (this $850 was an accidental one-time contribution from a recurring deposit in early 2023, which I had forgotten about). Now, our brokerage has withdrawn this excess ROTH IRA contribution and the associated earnings ($ 225) and moved it to our individual account. (around Apr 26).
Brokerage said, they will not generate any 1099-R for this year, but it will be available January 2025.
Doing my research, it seems I need to file an amended 1040-X for 2023 and show this $225 earnings as an adder to our AGI. Since, we already withdrew the excess contribution in April 2024 (before the Oct 15, 2024 deadline), I believe, we don't owe any extra 6% penalty or early withdrawal tax. (our age ~ 42 years); Can someone please confirm?
Question:
1. Do I even need to file 1040-X for 2023, or can I wait and file the regular 1040 for 2024 next year?
2. how do I calculate the federal taxes on this additional $225 earnings. The contribution-deposit was made more than 1 year ago, so I used the Qualified Dividends and Capital Gains Tax method and 15% of $225 = $34 as our extra tax we owe. Can someone please confirm?
3. what all printouts do I need to physical-mail to IRS for completing this amendment filing? Do I need to printout and send the original 1040 and ALL the Schedules, Forms etc? Or, only the 1040-X and any Schedules/Forms that needed edits (in this case: Form 8606, Form 5329 were the only 2 that needed edit due to the amendment)
4. Given that I owe IRS about $ 34, do I also send them a check for $34 along with my package? Or, can I pay this electronically, online, after IRS accepts my amendment? Is there any penalty or fees for not sending the check now? (Since I am not 100% sure if the taxes owed calculation is correct here, I wanted to not send the payment yet)
Thank you for your help !!
