Yeah, I hate it too when someone says to just ask my tax advisor, when I am my own advisor! Like you, I do some research and look for someone knowledgeable about the topic to bounce my questions off of.
Hopefully you haven't amended your 2022 tax return yet. After reading the entire thread again, I would just wait for the tax form and put it on my 2024 tax return. If the withdrawal shows as coming from a Roth account, that and the included growth won't impact your taxes owed. It sounds like you lucked out that it came out of a Roth. Since it also wouldn't impact your 2022 taxes owed, I wouldn't amend that return as it could open a can of worms with the IRS asking why you are amending something that doesn't change your taxes. Just write out your details (or print out this thread) and keep it with your 2022 tax return records in case 2022 gets audited for something else.
The overall rule in filing taxes is that you are reporting things as you believe is true at the time of filing. If the IRS disagrees, they will contact you. But since the amount in question is so small, they probably won't look at it. It doesn't make sense for the IRS or taxpayer to spend hours and hours on this. I would just enter the data on the 2024 tax form you will receive and call it a day.
Hopefully you haven't amended your 2022 tax return yet. After reading the entire thread again, I would just wait for the tax form and put it on my 2024 tax return. If the withdrawal shows as coming from a Roth account, that and the included growth won't impact your taxes owed. It sounds like you lucked out that it came out of a Roth. Since it also wouldn't impact your 2022 taxes owed, I wouldn't amend that return as it could open a can of worms with the IRS asking why you are amending something that doesn't change your taxes. Just write out your details (or print out this thread) and keep it with your 2022 tax return records in case 2022 gets audited for something else.
The overall rule in filing taxes is that you are reporting things as you believe is true at the time of filing. If the IRS disagrees, they will contact you. But since the amount in question is so small, they probably won't look at it. It doesn't make sense for the IRS or taxpayer to spend hours and hours on this. I would just enter the data on the 2024 tax form you will receive and call it a day.
Statistics: Posted by celia — Tue Jul 09, 2024 10:26 am — Replies 16 — Views 1692