IRA contribution

Forum|Forum|5 years ago
March 21, 2021
1 reply
20 views

Hello, in 2020 I contributed $2300 to my traditional IRA account, I don’t want to pay taxes on them now, when I put the 2300 in turbotax I’m only getting $10 return from the State, when I put that I got distribution for $2200 I paid $220 in taxes, it looks like something wrong is going on, can someone help please. thank you! (I hope it the question is clear)

macuser_22

Alumni - Champ

@youssefelramy wrote:

Hello, in 2020 I contributed $2300 to my traditional IRA account, I don’t want to pay taxes on them now, when I put the 2300 in turbotax I’m only getting $10 return from the State, when I put that I got distribution for $2200 I paid $220 in taxes, it looks like something wrong is going on, can someone help please. thank you! (I hope it the question is clear)

Do you have a 1099-R for the distribution? What code is in box 7?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

youssefelramy Author

Level 2

Hello, thanks for replying, it’s code 1

I don’t think there’s an issue with the distribution and tax on it but it’s when I put how much I contributed to my ira tax are not going down

macuser_22

Alumni - Champ

That is a normal distribution for under age 59 1/2 and not a return of contribution that would have a code N.

If you told the IRA custodian that you wanted a return of contributions by the due date of the 2020 tax return (May 17), then they should have issued a non-taxable 1099-R with a code N in box 7, the amount returned in box 1 and any earnings on the returned amount in box 2a.

Contact the IRA custodian for a corrected 1099-R if they made an error.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**