DanaB27
Expert Alumni

Get your taxes done using TurboTax

Lee,

 

The withdrawn excess contribution ($7,000) won't be included in the gross income but the earnings ($210.71) on this excess contribution have to be included in your income on your tax return.

 

The IRS states

 

How to treat withdrawn interest or other income.

 

You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made. 

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