Client is 58. He had a FMV Roth of 2001 of $1571. Earnings in 2014 of $1169. The 2014 tax return was done and whoever did it taxed the earnings and the 10% penalty. Saw the copy of the 2014 and now confused cause didn't think the earnings would be taxed. Do I amend it and not tax the earnings or leave it alone.
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Early distributions
What was the distribution code on the 1099-R? Code J?
The taxable amount of an early Roth IRA distribution is calculated on Form 8606. Line 19 being the nonqualified distributions, line 22 the basis. I would expect the taxable amount to be whatever exceeds the basis.
Information on the taxable amount of Roth IRA distributions can be found in publication 590-B. https://www.irs.gov/publications/p59...link1000231057
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