TT 2017 is asking "Enter the amount from line 24 on your 2016 Form 5329". -I did not use this form last year. What do I enter? Can I mail IRS 2016 5329 with payment ?

[Les]

I used an accounting firm for my filing taxes last year. Very good but very expensive.  I am now just using Turbo Tax 2017.

After I filed 2016 1040's I opened a Roth IRA for tax year  2016 in 2017 and contributed an excess of $453 for 2016 tax year.  Turbo tax caught my mistake for 2016 and 2017 ( I failed to reduce my IRA contribution by my deductible self employment portion)  

Is it permissible to just submit a 2016 tax Form 5329, part IV  and mail the $27 dollars I owe in with it?  If so ,would I also check the box that says"this is an amended return"?

I really don't want to amend my 2016 1040's if not required.  This should get me corrected for 2017 turbo tax filing. 

If this is allowable to submit the 2016 5329 by Mailing, can I then submit my 2017 1040's Efile ?

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Follow up question:  Forms prepared ready to mail.

Do I need to wait a certain  amount of time after filing a 2016 1040x  with 2016 5329 by mail, before e filing  2017 1040's?

[macuser_22 · Accepted solution]

 You probably should file an amended return since it should be reported on line 59 on the 1040 form but the IRS will probably accept a stand alone 5329.  If they send a letter you can just explain that it would have no effect on anything else on the return.

Be sure that you have removed the excess before the filing date with a normal distribution or the penalty will repeat every year that it remains in the Roth.   Since you will pay the 2016 penalty, it is not necessary to remove any earnings, only the excess contribution.

2916 5329 form:  https://www.irs.gov/pub/irs-prior/f5329--2016.pdf

2016 5329 instructions: https://www.irs.gov/pub/irs-prior/i5329--2016.pdf

Where to file: https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1...

[Les]

Yes I removed the excess this month so 2017 tax year should be ok, I suppose I will get taxed for 2016 twice, thanks for your quick response

[Les]

I decided to follow macuser_22 advice, 1040x ready to mail with 5329 and check for amount.  Do I need to wait a certain amount of time before submitting my TT efile of 2017 1040s?

[macuser_22]

No.  Amended returns take up to 4 months to process so there is no need to wait.

[Les]

Thanks macuser_22 .  FYI 1040x instructions list different mailing address for Montana 1040x .

[Les]

Macuser_22,  Since an accounting firm did my original 2016 1040, do you think I should give them copies of my 2016 1040x and 2016 5329 forms for my file there?

[macuser_22]

It would not hurt to have them check it if they don't charge you.