A:

If an IRA contribution was deducted on a tax return, but the contribution was never made to the IRA by the taxpayer's tax filing deadline (no extension included), the tax return must be amended to remove the contribution. Generally, Form 1040X must be filed within three years after the date the original return is filed or within two years after the date the taxpayer paid his or her income tax, whichever is later. If the contribution was reflected on the state tax return, an amended return for the state should also be filed.

For more insight, check out IRA Contributions: Deductions And Tax Credits.

This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS
  1. What procedure applies to a taxpayer who made excess contributions for 2001, 2002, ...

    If the IRA owner filed his/her 2004 tax return by the due date, including any extensions, he/she receives an automatic six-month ... Read Answer >>
Related Articles
  1. Retirement

    Traditional IRA Deductibility Limits

    Find out whether you can take a tax deduction on the contributions you make.
  2. Retirement

    IRA Contributions: Deductions and Tax Credits

    We outline the incentives and help you take full advantage of the benefits.
  3. Retirement

    An Introduction To Correcting Ineligible IRA Contributions

    Eager to save for retirement? Find out how to avoid overpayment penalties.
  4. Retirement

    IRA Contributions: Eligibility And Deadlines

    Use this checklist for contribution requirements to make your payments on time.
  5. Retirement

    Roth vs. Traditional IRA: Which Is Right For You?

    To answer this question, you need to consider several of the factors we outline here.
  6. Retirement

    Analyzing IRA And ESA Statements

    Learn how to read and verify 5498 and 5498-ESA reporting your retirement-account contributions.
  7. Taxes

    Important Year-End Tax Moves for 2016 (Part 1)

    Here's part of a year-end tax strategy for 2016, to make the most of your retirement savings plans.
  8. Retirement

    Which Is Better, a Traditional IRA or Roth IRA?

    Traditional IRAs and Roth IRAs have different benefits, but both are great for retirement savings.
RELATED TERMS
  1. IRS Publication 590: Individual Retirement Arrangements (IRAs)

    A document published by the Internal Revenue Service (IRS) that ...
  2. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  3. Amended Return

    A return filed in order to make corrections to a tax return from ...
  4. Form 1040X

    A form used by taxpayers who have to amend their tax returns ...
  5. IRS Publication 17

    A document published by the Internal Revenue Service that outlines ...
  6. Roth IRA

    A Roth IRA is an individual retirement plan that bears many similarities ...
Hot Definitions
  1. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  2. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Zero Day Attack

    Zero Day Attack is an attack that exploits a potentially serious software security weakness that the vendor or developer ...
  6. Effective Tax Rate

    The average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate ...
Trading Center