My IRA contributions are being penalized because of being on workmans compensation and not having enough earned income. How do I correct this?

[pinups23]

It's saying I contributed more to my Roth IRA than my income and that's because the majority of my income from last year was workmans comp so it was nontaxable. How do I correct this so I do not pay the penalty which also states that I will have to continue to pay this penalty every year until it is corrected

[PaulaM · Accepted solution]

To avoid paying this penalty, withdraw the excess contribution from your IRA (including any money earned on it) before the filing deadline of your tax return (April 18, 2017). If you file for an extension, you must do this before the due date of the actual return (October 16, 2017).

Then indicate in TurboTax that you withdrew the excess contribution in the IRA deduction section.