Then after you enter all your income enter her IRA contribution last. TurboTax will tell you if the deduction is not allowed and it would be non-deductible.
Being non-deducible gives her "basis" on the IRA so it will not be taxed when finally withdrawn but that is on a pro-rated basis with the total IRA value.
She has the option to have the contribution returned as " A return of contribution" before the extended due date with any earnings that attributed to the contribution that the IRS custodial should compute. Only the earnings would be taxable.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
