FreeTax Usa software / IRA question

[VINNY]

I'm beginning to prepare my 2020 taxes and I am using FreeTax USA.

In the IRA contributions section, it asks "Did you make any traditional or Roth IRA contributions during 2020?" Yes or No.

I made my 2020 contributions in the first week of January 2021, and I plan on making my 2021 contributions by the end of this month. I contributed the max, $7,000 for 2020 and 2021. (Over 50)

1. Should I answer "No" to the question up above since the contributions weren't actually made in 2020?

2. And if I do answer "No", (that's what I believe I should answer), the software is giving me a warning that I've overcontributed to my ROTH Ira and I could face penalties. It's not distinguishing that the $14,000 is for two different years.

However, if I answer Yes to the first question up above, there are no red flags that I've overcontributed to my ROTH Ira, but my hang up is that I did not actually contribute during 2020.

The question in my opinion should read, "Did you make any traditional or Roth IRA contributions for 2020".

Has anyone had this problem, and what did you do and recommend I do. Thanks!

Vinny

[kd2008]

Lord! You are making this needlessly complicated.

Yes, you contributed to your IRA in 2020 or tax year 2020 if you want to be pedantic. The date/year of actual contribution is irrelevant here.

[VINNY]

Lord! You are making this needlessly complicated.

Yes, you contributed to your IRA in 2020 or tax year 2020 if you want to be pedantic. The date/year of actual contribution is irrelevant here.

"Pedantic is an insulting word used to describe someone who annoys others by correcting small errors, caring too much about minor details, or emphasizing their own expertise especially in some narrow or boring subject matter."


Thanks for the response and my apologies for being annoying or caring too much about minor details when trying to avoid potential future dealings with the IRS.

For what it's worth, I posed my question to customer support and they just responded. The answer is YES. And, they apologized for the confusion and stated they understood how this could be misinterpreted. In addition, I was informed the wording will be clarified for future software editions to avoid confusion.

I hope this can help someone else and spare them a snarky response.

Vinny

[anon_investor]

Lord! You are making this needlessly complicated.

Yes, you contributed to your IRA in 2020 or tax year 2020 if you want to be pedantic. The date/year of actual contribution is irrelevant here.

"Pedantic is an insulting word used to describe someone who annoys others by correcting small errors, caring too much about minor details, or emphasizing their own expertise especially in some narrow or boring subject matter."


Thanks for the response and my apologies for being annoying or caring too much about minor details when trying to avoid potential future dealings with the IRS.

For what it's worth, I posed my question to customer support and they just responded. The answer is YES. And, they apologized for the confusion and stated they understood how this could be misinterpreted. In addition, I was informed the wording will be clarified for future software editions to avoid confusion.

I hope this can help someone else and spare them a snarky response.

Vinny

Turbo Tax words their series of questions for the same issue much better...

[donaldfair71]

The answer is Yes.

[Mullins]

Lord! You are making this needlessly complicated.

Yes, you contributed to your IRA in 2020 or tax year 2020 if you want to be pedantic. The date/year of actual contribution is irrelevant here.

"Pedantic is an insulting word used to describe someone who annoys others by correcting small errors, caring too much about minor details, or emphasizing their own expertise especially in some narrow or boring subject matter."


Thanks for the response and my apologies for being annoying or caring too much about minor details when trying to avoid potential future dealings with the IRS.

For what it's worth, I posed my question to customer support and they just responded. The answer is YES. And, they apologized for the confusion and stated they understood how this could be misinterpreted. In addition, I was informed the wording will be clarified for future software editions to avoid confusion.

I hope this can help someone else and spare them a snarky response.

Vinny

I know exactly how you feel, Vinny. And it's all because people like those who write those questions don't know how to communicate effectively.