Question

I over-contributed to my IRA so I withdrew the excess and earnings. When I enter the info in the IRA field on Turbotax, it reduces my refund by $300. What is going on?

Forum|Forum|5 years ago
July 8, 2020
1 reply
0 views

Once I removed the excess, my contribution for the year is the allowable amount. So it doesn't make any sense that my refund is being reduced by $300. I tried a test and just entered the final amount and made no mention of excess contributions and my refund went back up. I don't get it. It seems like I'm getting charged a penalty even though I have removed the excess before filing.

TurboTax Premier Online

macuser_22

Employee

If you removed it then there is no excess so only enter the amount after the removal as your contribution.

**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.**