In 2020 I started a TurboTax return but never paid and never filed with TurboTax. I decided to use a CPA instead. This year I returned to TurboTax and filled out my 2021 return. Despite what TurboTax says, it still pulled information from the 2020 return into the 5329 and is incorrectly adding tax on excessive contributions. The only way I discovered this was by PAYING and then downloading all forms for review. Herein lies the problem.
On the 2021 5329, line 18, it's pulling data from the NEVER FILED 2020 return and calculating tax due on this. I called customer support and spent 1 hour trying to resolve and it came down to the only 2 options being: 1) clear and start over and 2) create a new online account.
Well, since I paid I CANNOT clear and start over! Imagine that.!! I've tried deleting the 5329 from from my 2021 documents but TurboTax keeps re-creating it. I cannot upload to the 2020 year because I paid and apparently once you pay you can't fix anything! Imagine that!!
I've tried going back through everything, since this is my only option, but it keeps creating the incorrect 5329 form using bad data from 2020.
Not being able to clear once you've PAID, upload a previous year, or fix TurboTax's mistake is a major, serious, flaw! This is a software bug! It should NOT pull information for an un-filed tax return. And furthermore there should be a way to correct this one it does.
Does anyone know a way to fix or correct the form manually or stop TurboTax from regenerating incorrect forms?
If I have to create a new account, how do I a get my 10 years of history from my current account to the new account?
(and since I paid I now would have to pay again and ask for a refund, are you kidding me ... )
Go to the IRA contribution section and say you have a 2021 contribution for whichever type of IEA even if you do not have a 2021 contribution to enter. Step through the interview until the excess contribution section. If the 2020 excess appears enteer 0 (zero).
If the 5329 is still there then delete it.
Go to the IRA contribution section and say you have a 2021 contribution for whichever type of IEA even if you do not have a 2021 contribution to enter. Step through the interview until the excess contribution section. If the 2020 excess appears enteer 0 (zero).
If the 5329 is still there then delete it.
Thank you macuser_22. I had posted a different question to the forum and after digging into that question, it turned out to be one and the same as this. The 5329 was being created from the prior year's data. Your answer was the same given to that question and indeed resolved my issue. Thank you!
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