I'm asked to fill line 7 in form 5329 and I'm not sure what that means

[BillM223]

Where are you being asked about line 7? This is calculated by TurboTax.

[anumulapalli]

TurboTax asked me to review some details and is showing Form 5239 and I suppose it's saying that I made excess IRA contributions. But I didn't make any traditional IRA contribution this year other than my employee sponsored 401k

[BillM223]

This makes no sense. Line 7 on the 2023 5329 is in Part II, "Additional Tax on Certain Distributions From Education Accounts and ABLE Accounts"

"I suppose it's saying that I made excess IRA contributions." Why do you suppose this?

[anumulapalli]

IRA Contributions Worksheet: Line 7 - Taxpayer's excess traditional IRA contribution credit should be equal to $xxx.xx, the traditional IRA contribution credit from Form 5329, Part III.

This is the exact text which I understood as excess contribution. And I'm asked to fill Line 7

[BillM223]

Are you sure you're not referring to form 5498? Form 5329 (see here) is not the right form for what you are talking about.

Ah, now I see the reference to the "IRA Contributions Worksheet: Line 7", which has very little to do with the 5329.

"the traditional IRA contribution credit from Form 5329, Part III." Part III on the 5329 is lines 9 to 17. Does TurboTax say this exact phrase somewhere ("the traditional IRA contribution credit from Form 5329, Part III")? somewhere, please give me the name of the form.

[anumulapalli]

I'm sorry, maybe the form I'm filling is not 5329, but the text does say "the traditional IRA contribution credit from Form 5329, Part III". 

And the form name is "IRA Contributions Worksheet" if I'm not wrong

[BillM223]

"but the text does say "the traditional IRA contribution credit from Form 5329, Part III". What text? Where?

In fact, if you could make a screen shot with no personally identifiable information and post it here, that would be great, because I still don't see anything connecting form 5329, and line 7, and IRAs.

[anumulapalli]

[BillM223]

That's what I needed. Thanks for the screen shot, which exposes an old typo.

Unfortunately, I don't know what "the traditional IRA contribution credit from form 5329" refers to - "credit" is not usually used with an IRA, and neither is used with form 5329. Indeed, the word "credit" is not even found form 5329.

OK, I wanted to tell you this while I try to figure out what this is supposed to mean.

[anumulapalli]

Thanks! Really appreciate your responses 

[BillM223]

Ok, Line 5 in the screen shot above is the sum of your IRA Contributions, including those in excess.

Line 6 is any excess contributions withdrawn before the due date of the return.

Line 7 is any excess that hasn't been withdrawn yet.

Line 8 is the amount that is any repayments for special distributions for reservists (see https://www.irs.gov/pub/irs-news/ir-06-152.pdf) probably zero for most taxpayers)

Line 9 is the actual IRA contribution allowed.

OK, can you back into what Line 7 must be?

[anumulapalli]

"Line 7 is any excess that hasn't been withdrawn yet."

I don't understand. Am I allowed to withdraw IRA? 

"can you back into what Line 7 must be?"

I'm not sure if I understand your question