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
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  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 >>
  2. When would I need to use IRS Form 1040X when filing my tax return?

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