Based on the situation you described, I don't believe you have excess contribution. It is a really smart move to contribute $3,000 to your Roth IRA. You do qualify for the saver's credit, though. I think that is why TurboTax suggests you upgrade to Deluxe version.
Here is what you can do:
- Without upgrading, see how much is your tax liability (not balance, but tax based on your taxable income);
- Now upgrading TT to Deluxe, see how much is your refund. The saver's credit should wipe out any tax you owe on taxable income.
- Compare the two result and make your decision.
You are not required to claim the credit or enter your Roth IRA contribution into TurboTax. If you just want to file for free, simply remove the Roth IRA contribution you entered.
@fwick
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