I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?
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wmatwell
New Member

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

Do I need to file a correction? If so, how do I do that since I have already filed?

5 Replies
dmertz
Level 15

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

Yes, it matters and needs to be corrected, but making the correction might not change your tax liability.  Form 5329 is considered by the IRS to be a separate tax return.

Which part of Form 5329 was prepared?
wmatwell
New Member

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

The only thing that needs to change on form 5329 is to change it from my husband's name/txid to my own info
dmertz
Level 15

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

Which part of Form 5329 was prepared (Part I  through Part IX)?
wmatwell
New Member

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

Part II
dmertz
Level 15

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

This indicates that you associated a Form 1099-Q with the wrong spouse.  Although this won't affect joint tax liability, associating the penalty with the wrong individual can mean that the IRS will not recognize the penalty as having been satisfied by the correct individual.

As I mentioned, the IRS treats Form 5329 as a separate tax return.  You should probably file a corrected Form 5329 for your husband showing that your husband received $0 in taxable distributions and was not subject to the penalty, and file a Form 5329 for yourself showing you with the taxable income and penalty.  Otherwise, because there is generally no statute of limitations on penalties calculated on Form 5329, you risk the IRS claiming at any time in the future that you did not report this income and penalty.  Alternatively, you can leave it as is and if the IRS ever in your lifetime claims that you yourself did not report this income and penalty, provide the IRS with explanation then.


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