excess IRA contribution

[tman19]

Actually I just fixed the state problem. Just have the issue of why I need to pay 10% additional tax on the earnings of the 1099R which is already included in the reported income? thanks.

[tman19]

@DanaB27 It seems like both Federal and State has additional Tax on IRA with the Federal charging 10% on the gain. I am guessing will that be the Box 7 code 1 that is doing it as it says for tax payer before 59 1/2 so triggered the 10% on the gain since I reversed the contribution already? This tax showed up after I entered the code P. Any suggestion? Thanks again.

[DanaB27 · Accepted solution]

It seems you didn't enter the earnings under "Corrective distributions made before the due date of the return" on the "Did you use your IRA to pay for any of these expenses?" screen (step 12 in the above instructions). Please make sure you click "continue" after you entered all Form 1099-R to get to the "Did you use your IRA to pay for any of these expenses?" screen.

@tman19