Early 2016 I maxed out a ROTH IRA, $5500.
Early 2017, I am preparing my 2016 tax return, when I realize that I was not eligible for a ROTH IRA contribution for 2016. I call Vanguard, and have the contribution reversed. By this time, the $5500 turns into $6300. I file forms 5329 and 8606 on my 2016 tax return, and pay the penalties for the reversal.
I am now trying to file my 2017 tax return. Among my documents is a 1099-R that Vanguard sent me for the IRA contribution reversal which happened a year earlier. What do I do now? I have already filed the forms for this earlier mistake, and paid the taxes and penalties. It was about $300.
I called the IRS to ask them, and the lady I spoke with told me to just add a note to my return that I already took care of this on my 2016 return. I don’t see a way to attach a note when using Free Fillable forms. I really want to avoid having to file an amended return, $300 is almost not worth the headache, on the other hand, I would hate to have to pay for this twice.