DanaB27
Expert Alumni

Retirement tax questions

I reviewed your return. You had indicated in the Easy Guide that you withdrew money from an IRA due to excess contributions made in 2023 or previous year. 

 

 

 

You will need to edit a few entries in the IRA contribution interview:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Continue until the "Enter Excess Amount" screen and enter "1"
  4. Answer "Yes" on the "Excess Contribution Withdrawn"
  5. Delete the entry on the "Enter Amount Withdrawn" screen and click "Back"
  6. Click "Back" until you are on the "Enter Excess Amount" screen. Delete the entry here and then continue.
  7. On the "Let's Find your IRA basis" screen select "Easy Guide"
  8. Continue until the "Any of These Apply" screen select "I filed Form 8606..." and deselect "I withdrew money from an IRA..."
  9. On the "Report Basis From Form 8606" screen enter "7,000" and continue
  10. On the "Your IRA Basis Results" edit the entry under "IRA Basis of December 31, 2023" back to "6,500" and delete the entry under "Excess Contribution Amount Withdrawn before 2024"

 

 

 

 

 

Note, line 17 is $13,500 and line 18 is $1,367. Any gains before the conversion will be taxable.

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