topic Form 5329 included with $1000 additional tax in After you file

Form 5329 included with $1000 additional tax

cheuvront123 — Fri, 27 Mar 2020 01:47:00 GMT

Filed return - Form 5329 included with $1000 additional tax on line 17 for maxing out IRA - I am 70 and this is permissible. How can I have this amended?

Re: Form 5329 included with $1000 additional tax

AmyC — Fri, 27 Mar 2020 02:11:40 GMT

The best thing for you to do is say that you want to amend your return and download the software onto a computer. You will be able to see all the forms and what is happening to make sure everything is right before sending in the amended return. Please see:

file an amended return - how to amend
track an amended return - track the amend 3 weeks after mailing

Re: Form 5329 included with $1000 additional tax

macuser_22 — Fri, 27 Mar 2020 02:35:53 GMT

@cheuvront123 wrote:

Filed return - Form 5329 included with $1000 additional tax on line 17 for maxing out IRA - I am 70 and this is permissible. How can I have this amended?

That does not make sense. Since the maximum amount that could be contributed to a IRA in 2019 is $7000 (assuming that you had $7,000 of income that you worked for (usually W-2 or net self-employed income), the penalty on that would be (6% * $7,000) = $420). A $1,000 penalty on line 17 would mean an excess contribution of $16,000 that is impossible.

What did you do and what did you enter where?

Re: Form 5329 included with $1000 additional tax

cheuvront123 — Fri, 27 Mar 2020 15:11:21 GMT

I am allowed to contribute up to a max of $25k a year, while still working. So they have $18,000 extra with an excess tax of $1,000 on Form 5329. There should not have been any penalty.

Who do I contact at turbotax to correct this?

Re: Form 5329 included with $1000 additional tax

macuser_22 — Fri, 27 Mar 2020 15:31:32 GMT

What are you contributing to? Where is it reported?

That sounds like an employer retirement plan that is NOT an IRA and does not get entered anywhere in TurboTax other then box 12 on your W-2 or if a self-employed retirement plan in the self-employed section. If you entered it in the IRA contribution section - remove it.

Re: Form 5329 included with $1000 additional tax

cheuvront123 — Fri, 27 Mar 2020 15:39:24 GMT

Thanks. It is a 401k that IRS increased to $19k for 2019 and added a catch up of $6k. Let me amend.

Re: Form 5329 included with $1000 additional tax

macuser_22 — Fri, 27 Mar 2020 16:02:42 GMT

@cheuvront123 wrote:

Thanks. It is a 401k that IRS increased to $19k for 2019 and added a catch up of $6k. Let me amend.

If a W-2 employee than box 12 on your W-2 is the ONLY place that you report it.