Question

File Revision to Secure Refund of Overpayment

Forum|Forum|6 years ago
June 17, 2019
1 reply
0 views

We filed a joint tax return, however, I screwed it up by putting in a Roth IRA Contribution for a TSP Roth Contribution to a 401K in the Roth IRA Form and Box. She recently (in the past week) got assessed for 1029.44 for over contribution. This was based on her Social Security Number alone. How do I revise and correct the situation. We also got assessed 1010 in the tax return for the same Roth IRA. I know a 1040X would correct the 1010 assessment in the joint return. Can I add the 1029.44 to the joint return assessment and use the 1040X to get that assessment back as well (since I screwed it up and your kind offices have since told me what I did wrong and how to enter it all in the future) or since the letter from the IRS addressed just Angelita and her social security number only do I have to do a different form or different approach? Appreciate the guidance.....

Daniel W Tatum

D

dmertz

Employee

Did you pay the balance due with the tax return, including the $1,010 penalty? If not, the $1029.44 is presumably that balance due plus interest. Otherwise, a total of $2,039.44 sounds like two years worth of 6% excess contribution penalty, which makes me wonder if the error occurred on your 2017 tax return rather than on your 2018 tax return. I suggest obtaining your 2017 and 2018 tax return and account transcripts: https://www.irs.gov/individuals/get-transcript

Regardless, contact the IRS as indicated in the instructions that came with the notice and explain that your tax return reported an excess Roth IRA contribution that was not actually made, and ask how that resulted in he bill if the supposed balance due was paid when you filed your tax return. Expect the IRS to ask you to send an amended tax return correcting the Form 5329 and showing on Form 1040X the resulting change to Other taxes. Using TurboTax to amend will result in TurboTax simply removing Form 5329 Part IV, so you'll need to manually prepare a corrected Form 5329 for your wife showing zeros in Part IV explicitly replacing the mistaken entries and include it with the mailed amendment.

How to amend using TurboTax: https://ttlc.intuit.com/community/amending/help/how-to-amend-change-or-correct-a-return-you-already-filed/00/25588

Note that this is a public forum and many answers here are provided by TurboTax users such as myself rather than by TurboTax employees.