topic Where on the NJ State Return do you adjust for a withdrawal due to an excess contribution to a traditional IRA that was returned in the same year? in Retirement tax questions

Where on the NJ State Return do you adjust for a withdrawal due to an excess contribution to a traditional IRA that was returned in the same year?

cacarson12 — Sat, 01 Jun 2019 15:17:26 GMT

Currently Line 19a is reporting this as taxable. The withdrawal is not taxed on the federal return. See details.

I made an excess contribution of $6500 to a traditional Rollover IRA in 2017. The excess amount was returned in 2017, but only $6414, resulting in a $86 loss. The 1099 R - Box 1 = $6414 and Box 7 = "8". Although the Federal 1040 does not tax me on the $6414, the NJ 1040 is treating it as a withdrawal and taxing me on it.

Two questions:

Does NJ tax you on the return of excess contributions. The Fed does not.
What adjustment do I need to make in either the NJ 1040 or Fed 1040 to avoid being taxed on the NJ 1040?

You neglected to put Yes, for the IRA checkmark in Box 7.

fanfare — Sat, 01 Jun 2019 15:17:28 GMT

You neglected to put Yes, for the IRA checkmark in Box 7.

Thank you for your assistance; however I am not sure wher...

cacarson12 — Sat, 01 Jun 2019 15:17:30 GMT

Thank you for your assistance; however I am not sure where you are referring to. Do you mean on the Federal return when you are entering the 1099- R information or on the NJ Return? I don't see a place to check a "Yes". Please assist.

all tax documents are entered in the Federal section and...

fanfare — Sat, 01 Jun 2019 15:17:32 GMT

all tax documents are entered in the Federal section and information flows to the state returns.
Your 1099-R has the IRA box checked; you must tell TurboTax that.
I don't remember the exact prompt that is used by the program.

go back to the 1099-R and click Update and Edit.

fanfare — Sat, 01 Jun 2019 15:17:33 GMT

go back to the 1099-R and click Update and Edit.

I am in the Fed return now. On the 1099-R, Box 7 = 8, an...

cacarson12 — Sat, 01 Jun 2019 15:17:35 GMT

I am in the Fed return now. On the 1099-R, Box 7 = 8, and I checked "IRA/SEP/SIMPLE. Is there something else I should be checking as the NJ is still making this taxable.

are you saying you had already entered it as checkmarked ?

fanfare — Sat, 01 Jun 2019 15:17:36 GMT

are you saying you had already entered it as checkmarked ?

My 1099-R has a "X" in the IRA/SEP/SIMPLE BOX. So I have...

cacarson12 — Sat, 01 Jun 2019 15:17:37 GMT

My 1099-R has a "X" in the IRA/SEP/SIMPLE BOX. So I have that entered in TurboTax. If I uncheck that box, then the withdrawal is not taxable on the NJ return. I am not sure that I should uncheck the box.

what is your taxable amount in box 2a ?

fanfare — Sat, 01 Jun 2019 15:17:39 GMT

what is your taxable amount in box 2a ?

Yes. I already had the check mark. Is there a problem w...

cacarson12 — Sat, 01 Jun 2019 15:17:41 GMT

Yes. I already had the check mark. Is there a problem with TurboTax

Box 2a = 0

cacarson12 — Sat, 01 Jun 2019 15:17:41 GMT

Box 2a = 0

The fed 1040 shows the amount as non-taxable

cacarson12 — Sat, 01 Jun 2019 15:17:42 GMT

The fed 1040 shows the amount as non-taxable

The Box 1 amount ($6414) is getting carried forward to t...

cacarson12 — Sat, 01 Jun 2019 15:17:43 GMT

The Box 1 amount ($6414) is getting carried forward to the NJ return as being taxable

I hear you ! I tried this in another tax program and got...

fanfare — Sat, 01 Jun 2019 15:17:45 GMT

I hear you ! I tried this in another tax program and got the result you're looking for, No tax in Fed or NJ.
I'm not sure what the issue is with TurboTax.

So your saying it might be my version of TurboTax? If so...

cacarson12 — Sat, 01 Jun 2019 15:17:48 GMT

So your saying it might be my version of TurboTax? If so, who can I contact?

For assistance, contact turboTAX support here https://support.turbotax.intuit.com/contact">https://support.turbotax.intuit.com/contact</a>
@dmertz OR, perhaps someone else on the forum will know what's going on and what the correction is.

Thank you for your assistance. I greatly appreciate it. B...

cacarson12 — Sat, 01 Jun 2019 15:17:53 GMT

Thank you for your assistance. I greatly appreciate it. By the way, can you tell me the name of the other tax program you were using? I may want to switch next year.

We're not allowed to name or recommend other software on...

fanfare — Sat, 01 Jun 2019 15:17:55 GMT

We're not allowed to name or recommend other software on this forum.

I didn't think so, but thought I would try. Thank you ag...

cacarson12 — Sat, 01 Jun 2019 15:17:56 GMT

I didn't think so, but thought I would try. Thank you again for all of your help. I couldn't figure out how to contact @dmertz directly, so I had TurboxTax call me. I am waiting for an expert to call me back. Have a good night.

@cacarson did you ever figure this out. I am in the same...

BK-Tax — Sat, 01 Jun 2019 15:17:58 GMT

@cacarson did you ever figure this out. I am in the same boat now, if you an comment on how you were able to fix this.

topic Where on the NJ State Return do you adjust for a withdrawal due to an excess contribution to a traditional IRA that was returned in the same year? in Retirement tax questions

Where on the NJ State Return do you adjust for a withdrawal due to an excess contribution to a traditional IRA that was returned in the same year?

You neglected to put Yes, for the IRA checkmark in Box 7.

Thank you for your assistance; however I am not sure wher...

all tax documents are entered in the Federal section and...

go back to the 1099-R and click Update and Edit.

I am in the Fed return now. On the 1099-R, Box 7 = 8, an...

are you saying you had already entered it as checkmarked ?

My 1099-R has a "X" in the IRA/SEP/SIMPLE BOX. So I have...

what is your taxable amount in box 2a ?

Yes. I already had the check mark. Is there a problem w...

Box 2a = 0

The fed 1040 shows the amount as non-taxable

The Box 1 amount ($6414) is getting carried forward to t...

I hear you ! I tried this in another tax program and got...

So your saying it might be my version of TurboTax? If so...

For assistance, contact turboTAX support here https://support.turbotax.intuit.com/contact">https://support.turbotax.intuit.com/contact</a>@dmertz OR, perhaps someone else on the forum will know what's going on and what the correction is.

Thank you for your assistance. I greatly appreciate it. B...

We're not allowed to name or recommend other software on...

I didn't think so, but thought I would try. Thank you ag...

@cacarson did you ever figure this out. I am in the same...

For assistance, contact turboTAX support here https://support.turbotax.intuit.com/contact">https://support.turbotax.intuit.com/contact</a>
@dmertz OR, perhaps someone else on the forum will know what's going on and what the correction is.