Question

Why is this trying to make me upgrade to DELUXE? You have Additional Tax on Excess Contributions or Deductions (Form 5329). TurboTax Free Edition does not cover this

Forum|Forum|5 years ago
February 12, 2021
1 reply
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I entered a $6000 deposit in my Roth IRA ( max ) and a single 1099-Q and two W2s. Not understanding what excess contributions or deductions I have

TurboTax Free Edition Online

DaveF1006

The 5329 was required because of your 1099-Q. If you had earnings that were in excess of your contributions, then the amount of earnings is taxed at 10%. This is true if you were the account holder or recipient and your child was the student or if you are the student and the recipient both.

So if you were the designated recipient but the educational expenses were used for a student other than yourself, the earnings are taxable. Be sure to enter your child's educational expenses to offset some of tax paid on the earnings received.

[Edited 02-11-2021|06:51 PM PST]

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