We withdrew in 2021 from an IRA. We made a replacement deposit to that same IRA within sixty days of the withdrawal. The 1099R shows the gross amount of the withdrawal. When I enter in the IRA contributions area the amount we put back, TT says that we can't receive credit (ie reduction in tax liability) because our AGI is too high.
Irrespective of our earning/AGI, we should be allowed to reduce the IRA withdrawal by putting back amounts before sixty days expires. How do we get credit for the put back amount?
Should've the IRA custodian reduced the 1099R by the put back? If I enter the net amount (withdrawal less put back) in the 1099R entry, wouldn't that raise flags with the IRS?
Please help.
