Non-Deductible IRA Contributions

[Marshall]

I have a 61 yr old taxpayer who participates in a retirement plan at her job, withdrew from a traditional IRA in 2019, and also wants to contribute the max $7,000 to a traditional IRA for 2019 before 4/15/2020. I calculated the IRA Deduction Worksheet and she is unable to claim an IRA Deduction for the $7,000 due to her modified AGI being higher than the $74,000 single filer limitation for 2019. So I then tried to see if she could benefit from a reduction in the Taxable IRA Distributions since she would have both - Distributions & Contributions to a traditional IRA for 2019. When I completed the worksheet for the IRA Contributions, I included the $7,000 on line 1 for traditional IRA contributions made for 2019 including those made through 4/15/2020. I checked box 10 that she was covered by a retirement plan at work and I also included the $7,000 on line 11 where it says to enter any contributions in the total traditional IRA contributions that were made during 1/1/20-4/15/20. Line 11 prevented any of the amounts to continue to 'flow' over to the Taxable IRA Distribution Worksheet and allow any of her $7,000 contribution to be Nontaxable. If I deleted the amount on Line 11, it allowed amounts to 'flow' over to the Taxable IRA Distribution Worksheet and a portion of her $7,000 contribution is Nontaxable and is deducted from her 2019 Distribution that she received and reduced her tax liability. I researched the IRS website as well as ProSeries Help and I cannot find where it states that the DATE the contribution is made has to be within the calendar year of 2019. Why wouldn't the contribution that this taxpayer makes during 1/1/20-4/15/20 that is for the 2019 tax year be able to be used in this instance? I have pulled Publication 590-A and 590-B and looked over the examples and not seeing anything that relates to this case. I was wondering if it is something to do with this software? Or maybe I am just overlooking something?? I really appreciate any help!

[qbteachmt]

From here:

https://www.irs.gov/publications/p590b#en_US_2019_publink1000230799

Jump to this section:

"Contribution and distribution in the same year.

If you received a distribution in 2019 from a traditional IRA and you also made contributions to a traditional IRA for 2019 that may not be fully deductible because of the income limits, you can use Worksheet 1-1 to figure how much of your 2019 IRA distribution is tax free and how much is taxable. Then you can figure the amount of nondeductible contributions to report on Form 8606. Follow the instructions under Reporting your nontaxable distribution on Form 8606, next, to figure your remaining basis after the distribution.

Reporting your nontaxable distribution on Form 8606."