Line 27: Excess Roth Contribution Credit should not be more than zero error message

[rgc999999]

Getting the above error in the IRA Contribution Worksheet. Made an excess Roth contribution of $6960 in 2019 for both myself and my wife. In 2020 we didn't make any Roth contributions. Based on 2020 MAGI, TT computed that we are eligible to apply a $5600 credit each leaving $1360 in rollover into 2021. Entered all the information via Step-by-Step. When Error check is run, on the Worksheet it is giving above error for me but not for my wife. Line 26 for me is red. Forms 5329-T and 5329-S both pass the error check.

Why am I getting that error? Under the rules, I should be able to apply the $5600 allowable credit for both of us.

[JoeJoeClone]

Same situation here.  Is this an error in the programming?

[AnnetteB6]

If you would be willing to share a diagnostic copy of your tax file, it could be helpful to examine the situation in more detail.  

To do so, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

@JoeJoeClone

@rgc999999

[JoeJoeClone]

Version 20 000 1601

token 735113

[JoeJoeClone]

Any update to report on this issue?  I sent a diagnostic copy but have not received a reply or confirmation.

[bwaide]

I'm having a similar error. Showing a 5329-S and 5329-T error but I don't have any excess contributions or early withdrawals.

Token #: 744928

[LinaJ2020]

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

Form 5329

Thank You for your patience

If you take a distribution from a retirement plan including IRA account before age 59 1/2, you must pay the 10% additional tax on the amount you withdrew.  However, if you qualify for an exception on Form 5329, you do not need to pay.  Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty.