me-carney
Level 3
03-16-2021
02:47 PM
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For Proseries Basic, Line 7 on the IRA Contributions worksheet, says Excess Traditional IRA Contribution credit. I have a client who made a $4,300 excess contribution in 2019. My understanding is that there is a 6% excise tax on that amount. When doing the federal review for 2020, I came to that worksheet and I have to put an amount on Line 7 of the worksheet. Can the client use this 4,300 for a 2020 credit and it then be a deduction on their 2020 return? Does that remove the excise tax? If so, can someone point me to the regulation for this? Thanks.
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