ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
On Dec. 27th 2016, I contributed $1,500.00 to an existing IRA @ Fidelity. It was a foolish mistake on my part, in that I wasn't aware that you aren’t allowed to contribute when you have no earned income
When I realized my mistake, I contacted Fidelity, & on Jan. 23rd 2017, I received a check for $1,515.90
I also have a large taxable brokerage account at Fidelity. The tax information for that account was finally available today, & just as I started my return, I remembered the IRA screw up, & decided I better check into that first. I spoke to a Fidelity representative earlier today & here's what I found.
I told him that I’ve used TurboTax deluxe since 2001 & that ever since the feature became available, I’ve always downloaded my tax info directly from Fidelity. Since a 1099-R showing the ‘IRA mistake’ is part of my tax info @ Fidelity, I figured when I downloaded that into my return, it would automatically make the necessary adjustments.
According to the representative, this isn't the case. He told me that unless I contact TurboTax directly, I'll be charged whatever my federal tax rate is, on the entire $1,515.90, not the ’Taxable Amount’ of $15.90 shown on the 1099-R
Even worse than that, if the $1,515.90 was somehow added as additional income, it might be enough to put me over the ACA limits & I'd really be screwed.
Fingers crossed & hoping there's a way out of this
When I realized my mistake, I contacted Fidelity, & on Jan. 23rd 2017, I received a check for $1,515.90
I also have a large taxable brokerage account at Fidelity. The tax information for that account was finally available today, & just as I started my return, I remembered the IRA screw up, & decided I better check into that first. I spoke to a Fidelity representative earlier today & here's what I found.
I told him that I’ve used TurboTax deluxe since 2001 & that ever since the feature became available, I’ve always downloaded my tax info directly from Fidelity. Since a 1099-R showing the ‘IRA mistake’ is part of my tax info @ Fidelity, I figured when I downloaded that into my return, it would automatically make the necessary adjustments.
According to the representative, this isn't the case. He told me that unless I contact TurboTax directly, I'll be charged whatever my federal tax rate is, on the entire $1,515.90, not the ’Taxable Amount’ of $15.90 shown on the 1099-R
Even worse than that, if the $1,515.90 was somehow added as additional income, it might be enough to put me over the ACA limits & I'd really be screwed.
Fingers crossed & hoping there's a way out of this
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